Wrap SIPP drawdown offers a range of flexible options to suit you and your clients.
Clients can benefit the most from locking in their Wrap SIPP platform charge when assets are at their highest. This means charges for their SIPP will not increase as they take money out of their pension pot and move back down the pricing tiers.
The price locked in is based on pension and non-pension platform eligible assets, including assets held within a family linking arrangement. The Price Lock applies to the SIPP platform charge.
We understand that clients' plans and needs can change. You have flexibility to apply and reset the price lock once in a 12 month period for each eligible client. You can remove the lock at any time.
We have options that make it easier to customise drawdown to suit your clients' needs.
Flexi-access drawdown - Take all or some of the tax free cash entitlement and use the remaining funds to provide a flexible income.
Capped drawdown - Existing capped drawdown clients can remain in capped drawdown, maintaining their annual allowance and taking income payments in line with GAD.
Tailored drawdown - Regular income made up of any combination of tax-free and taxable income, within legislative limits. With Wrap SIPP, tailored drawdown will be automated if the income is set up correctly at outset and there is always cash available.
There is no charge for moving to drawdown or being in drawdown. However, if the client is invested in Level 3 a yearly charge for pension fund withdrawal will apply. This will apply if tax-free lump sum(s) or income has been taken, even if there has been no income paid in the last 12 months.
Please see our charges guide for details.
Flexible adviser charge options are available including Drawdown Initial and Ad hoc charges, which ensure that paying for advice in retirement can be done flexibly and at any point.
All adviser charges can be expressed as a percentage or a set monetary amount.
You may agree a charge with your client for advice for drawdown. We call this the initial adviser charge. This will apply each time your client takes benefits.
Payment be taken once a year or split across a different time period (every month, quarter, half-year or year).
You may agree to take a one-off payment for client servicing, which is known as an ad hoc adviser charge. This can be taken at any time.
We'll only pay the charge if a client has enough money in the SIPP bank account or in our insured (SLIP) pension funds. We won't disinvest other assets to pay it. This means that we’ll delay payment until there’s enough money to support the payment of the charge.
If the charge payment fails three times due to insufficient money being held in the SIPP bank account and the insured pension funds, we’ll cancel the charge. We’ll notify you, and we'll write to your client after the second failure.
Check that you have the right platform and pension provider in place to meet your client’s needs in drawdown.
You can review our adviser considerations guide for steps to drawdown due diligence along with answers to key questions.
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