Important information: A SIPP is for those wanting to make their own investment decisions when saving for retirement. As investment values can go down as well as up, the amount you retire with could be worth less than you invested. Usually, you won’t be able to withdraw your money until age 55 (57 from 2028). Before transferring your pension, check if you’ll be charged any exit fees and make sure you don't lose any valuable benefits such as guaranteed annuity rates, lower protected pension age or matching employer contributions. If you’re unsure about opening a SIPP or transferring your pension(s), please speak to an authorised financial adviser.
Looking for a better pension drawdown provider?
Going into drawdown with one pension provider doesn't mean you are stuck with them forever.
Whether you're thinking about starting drawdown or you're already in drawdown and are taking an income from your pension, it's worth checking if moving your pension to a new provider may be better for you.
Why choose ii for your pension drawdown?
- Low cost - we charge a low, flat fee unlike many pension drawdown providers. Pension drawdown is included in our monthly SIPP fee from £5.99.
- There are no hidden fees – with the ii SIPP there are no drawdown set-up or ongoing administration fees. You will pay the normal trading fees if you sell investments to allow cash withdrawals (trades usually cost £3.99).
- Online Access - drawdown is set up online; any changes or additional withdrawal requests can be made online too. If you decide to withdraw taxable income you will receive a payslip each month that you can download or view online.
Your low-cost withdrawal options
You can withdraw money from your pension once you reach 55 (57 from 2028).
We offer a range of flexible online options:
- Take a tax-free lump sum - you can usually take up to 25% of your pension tax-free, even if you don't plan to take the rest until later.
- Income drawdown - take a tax-free lump sum of up to 25%, and set up regular or one-off payments for the rest.
- Lump sums (UFPLS) - take your pension in lump sums, as and when you need them. The first 25% of each lump sum is tax-free, and the rest is taxed as income.
See if you could save on pension drawdown fees
It’s very important to check how much you pay in drawdown and other withdrawal fees now or in the future. Over time these fees can have a large impact on your pension pot and could mean a re-think of the amount of income you can withdraw in retirement or as a Tax-free lump sum.
With the ii SIPP there are no fees for taking an income from your pension. It's all included in our low-cost SIPP service plan – there are no hidden administration or withdrawal fees. You will pay the normal trading fees if you sell investments to allow cash withdrawals (trades usually cost £3.99).
How to transfer a pension in drawdown to ii?
Things to consider before you transfer
Please check that you won’t lose any safeguarded benefits if you transfer. This could include guaranteed annuity rates or lower protected pension age than the Normal Minimum Pension Age (rising from 55 to 57 in 2028). Please also check any transfer-out fees.
Deciding how to use your pension to meet your income requirements is not always easy. If you have any questions, we recommend speaking with Pension Wise (a service from MoneyHelper), or an independent financial adviser.
Please note that if you plan to hold both drawdown and non-drawdown pots in your ii SIPP, you cannot allocate specific investments to each pot separately. This means that the value of each pot will change in line with the overall performance of all the investments held in your SIPP.
Our SIPP charges
- When you open our SIPP you will start on our £5.99 a month Pension Essentials plan.
- When the value of your account grows above £50,000 you will move onto our £12.99 a month Pension Builder plan.
- Existing customers with an ISA and/or Trading Account on our Investor Essentials plan can add a SIPP for an extra £5 a month. You can then invest up to £75,000 across your accounts. Above this you will move onto Investor + SIPP for £21.99 a month.
- You can add a SIPP on our Investor plan for just £10 a month (plus your existing monthly fee).
- There are some other fees for things like foreign currency exchange and Stamp Duty on shares. View our charges page for a full list.
Benefits of our plans
- All our plans allow you to invest as little as £25 a month using our free regular investing service.
- UK and US trades cost only £3.99.
- There are no extra fees for taking money out of your pension.
Full terms for our Pension Essentials plan can be found here.
How can Pension Wise help?
If you have a defined contribution pension scheme and are 50 or over, then you can access free, impartial guidance on your pension options by booking a face to face or telephone appointment with Pension Wise, a service from MoneyHelper.
If you are under 50, you can still access free, impartial help and information about your pensions from MoneyHelper.
