The Lemon Fool

I have three main pension pots - one is a PPP with Aegon. The OCF of holding the funds with Aegon is high (maybe should have got out years ago - but the returns have been fairly good on the 4 funds I hold).

Anyway that's history and I want to crystalize soon and wish to hold the pot in a lower cost platform. I could switch to one of the other main platforms I use and maybe get some discount on their charges for a larger holding or I could switch to maybe Vanguard. Their OCFs appear considerably lower than their competitors. Of course I am aware that one is restricted to their own funds.

I was wondering whether any Fools use Vanguard as a platform and what their experiences are? Also, I can look at their track record for their 70 or so funds - but also interested in whether Fools have been satisfied with their returns.

T7

Last time I checked them there were 2 problems
Drawdown was not in place -always handy if you are thinking of retiring!
Their expenses regime suited smaller pension pots .Larger pots would do better elsewhere
Having said that I am sure their product will develop
Monevator.com has a comparison chart for pension providers
xxd09

we don’t offer any flexi-access drawdown options yet

Indeed - a clincher for me.

T7

If you're OK with the (limited) investment options Vanguard offers and the fee structure stacks up for you vs. the alternatives, but are intending to begin drawing down in the immediate future, then I'd simply wait a while and hold off in order to see what/when they make this available.

They have previously stated: "Our drawdown options for investors aged 55 and over who wish to take payments from their pension, such as flexible-access drawdown, will follow in the 2020-21 tax year."
https://www.vanguardinvestor.co.uk/arti ... al-pension

ie. the current tax year is their goal for drawdown to be available. Perhaps this will be delayed somewhat, or perhaps it won't, but they are aiming at delivering this in the nearer term as opposed to it being a longer term "aspiration".


As to the platform, I've been using it for a relative's accounts I help oversee. It seems OK; some aspects are perhaps a little unintuitive to me vs regular brokers I use, perhaps because it is pitched at a very broad audience as opposed to being aimed at people who spend all their time with investments like me. It's a quirk rather than a problem (ie. no big deal) and nothing that would have me steer people away from it.


The main questions for you therefore are probably those alluded to in the first para above:
(i) Does this specific restricted platform offer you the investment options you need, vs. an all-of-market SIPP provider or other personal pension providers? So you need to know or decide what you wish to be invested in and then determine whether you can approximately achieve that within a Vanguard account. On this issue, compromises are OK so long as they are reasonable and still achieve the overall portfolio shape you're aiming for.
(ii) Does the fee structure make it appealing vs. alternatives?

For my relative, Vanguard ISA and Pension accounts ticked sufficient boxes, so that's what they went for. They won't be drawing down for a number of years, so they could look through that current limitation.

tikunetih wrote:The main questions for you therefore are probably those alluded to in the first para above:
(i) Does this specific restricted platform offer you the investment options you need, vs. an all-of-market SIPP provider or other personal pension providers? So you need to know or decide what you wish to be invested in and then determine whether you can approximately achieve that within a Vanguard account. On this issue, compromises are OK so long as they are reasonable and still achieve the overall portfolio shape you're aiming for.
(ii) Does the fee structure make it appealing vs. alternatives?

A follow up to emphasise the most important issue here - as always - is to have reached a good understanding of what your investment strategy will be, principally what you intend to be invested in given due regard to your investment time horizon and volatility & risk tolerances.

The platform choice is very much secondary to that, and is concerned with issues such as ensuring the functionality is sufficient (eg. offers what you wish to invest in or close proxies thereof, has drawdown functions to meet your needs, etc.), that they are reliable & that you trust the provider, and that account operating costs are minimised as much as possible.

Avoid putting the cart before the horse by choosing a provider first. Decide on your strategy/plan first, then let the provider rather "choose itself".