How do I choose a drawdown pension provider?

[SabrinaThwaite]

I have about £28k in a defined contribution pension - an old pension from my early 20s. I’ll need to decide whether to leave it there for now (I’m coming up to 60) or do something with it. The current provider only offers annuities, which I don’t want.

I’m not currently working (so basic rate tax payer just on income from current savings / investments) or paying into a pension, nor do I plan to, and I’m not into actively managing funds. I’m thinking that a managed drawdown pension that I could draw on monthly could be an option, but I’m not sure where to start.

Any advice / ideas? Or other possible options? I wouldn’t be relying on this for an income.

Can you contact another provider to two, I can think of Scottish Widows or Aviva or Vanguard.
I would call them and ask to speak to an advisor about firstly transferring your pension, and then what can you do with it.
I know you can take 25% tax free, which could be as one bigger lump sum of £7k or get 25% of each withdrawal tax free.
But start by looking up some pension providers and calling them up and talking to someone.

Why not speak to a financial adviser - they can look over all your pensions and advise.

Companies like Axa and Zurich all have pensions and worth a call

Your best bet would be to speak to an independent financial advisor. Calling any companies wouldn’t necessarily get you the best advice as they can only advise you about their own products. Speak to someone who’s not connected to any company so you get the best advice possible. Starting point would be to look for an independent financial advisor that’s close to you.

@redfishcat I have a tiny workplace pension with Scottish Widows so I could transfer it into that and consolidate the two.

@Silvertulips As long as I can find an IFA happy to deal with a small pot. My other pensions are defined benefits and I’m happy managing those.

You could try this first - free advice but a decent resource. https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise

@JustGotToKeepOnKeepingOn I was planning to speak to my friend’s IFA but he announced that he’s retiring and not taking on anything new.

@NDfan Thank you - been through their online service, which was helpful ish - more next steps rather than actual advice.

No IFA can justify to charge what the advice would cost.

For such a small amount it is not worth contacting an IFA. The cost of doing so would outweigh any benefit

As it is less than £30 it counts as a 'small pot' so there are tax advantages. Plenty of low cost SIPP providers you could transfer it to, look at MSE to find charges and compare them

Thanks all. I’ve decided to transfer it into my existing Scottish Widows pension, which I can manage quite easily online.

Please take great care with Scottish Widows - have a look at @ScottishWidows Complaint Plaform. on Facebook - so many issues and poor treatment of people

I transferred my workplace pension to Aviva about 10 years ago - no IFA involved. It was only about £6k, so I thought sod it, that won’t get me anywhere - and put it into 2 of their highest risk funds (shit or bust). I can not draw it for another 6 years, but it is currently at £115k (could go down or up, a risk I felt worthwhile).

Scottish Widows was recommended by DH’s IFA and is the pension provider used by my former workplace.