Low cost SIPP platform for regular saver

Workerbee999
Workerbee999 Posts: 111
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Hi

I'm sure this has been asked numerous times across the threads, but I wondered if anyone could suggest the lowerest cost SIPP platform that would be best for a simple SIPP @ £150 per month in a Vanguard Lifestyle 100%

Is there any expectation that Vanguard will open their new platform to SIPPs any time soon?

Thanks
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  • dunstonh
    dunstonh Posts: 116,040
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    Is there any expectation that Vanguard will open their new platform to SIPPs any time soon?

    Running costs for SIPPs are higher than other tax wrappers. Plus, the costs are expected to increase. Vanguard have a history in the UK of phasing things in or phasing charges down. Expectation is likely to be 2018 or 2019 depending on how much sucess they have with the ISA/unwrapped and whether volumes on those will require them to run the SIPP more expensively than the ISA/unwrapped.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • bigadaj
    bigadaj Posts: 11,531
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    For smaller sums it's probably bestinvest, 0.3% plus fund charges so a bit over 0.5% all together.

    That's pretty good, a personal pension would probably be similar though.
  • kidmugsy
    kidmugsy Posts: 12,709
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    Free the dunston one next time too.
  • Workerbee999
    Workerbee999 Posts: 111
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    Thanks.

    If the SIPP is going to be for my husband, does it matter if the contribution comes out of my bank account, or does it need to be one in his name? He is a 40% tax payer so I am assuming that he will get the 20% Gov top up as normal, and will then claim back the 20% through his tax code, so it's just about the logistics of which account it comes out of. (No salary sacrifice available to him and I am already maxing my contributions)
  • zagfles
    zagfles Posts: 20,277
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  • I just want to check i've understood this.

    Looking at Cavendish Online (0.25% charge) and Hargreaves Lansdown (0.45% charge up to £200) as 2 examples.

    With £10,000 in the pot the cost would be
    CO: 0.025*10,000 = £250
    HL: 0.045*10,000 = £450 yet it's capped at £200 according to http://monevator.com/compare-uk-cheapest-online-brokers/ so while the % is more it's actually cheaper at £10k

    even moreso if in an ISA and not a SIPP.

    Just wanting to double check that i've got the right jist of it because i'm at £7,500 currently

    so CO: 0.025*7500= £187.50
    HL: 0.045*7500= £337.50 (but capped at £200)

    so i'm not really going to be far off (if i've understood correctly) HL being cheaper (in terms of SIPP but already cheaper if in terms of ISA)

    Or have i got the wrong end of the stick?
  • zagfles
    zagfles Posts: 20,277
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    I just want to check i've understood this.

    Looking at Cavendish Online (0.25% charge) and Hargreaves Lansdown (0.45% charge up to £200) as 2 examples.

    With £10,000 in the pot the cost would be
    CO: 0.025*10,000 = £250
    HL: 0.045*10,000 = £450 yet it's capped at £200 according to http://monevator.com/compare-uk-cheapest-online-brokers/ so while the % is more it's actually cheaper at £10k

    even moreso if in an ISA and not a SIPP.

    Just wanting to double check that i've got the right jist of it because i'm at £7,500 currently

    so CO: 0.025*7500= £187.50
    HL: 0.045*7500= £337.50 (but capped at £200)

    so i'm not really going to be far off (if i've understood correctly) HL being cheaper (in terms of SIPP but already cheaper if in terms of ISA)

    Or have i got the wrong end of the stick?
    The cap only applies to shares, ETF's etc, not to funds.

    See http://www.hl.co.uk/pensions/sipp/charges-and-interest-rates
  • zagfles wrote: »
    The cap only applies to shares, ETF's etc, not to funds.

    See http://www.hl.co.uk/pensions/sipp/charges-and-interest-rates
    Thanks.
    That was one of those i'm sure i'm getting something wrong here but not sure what moments. :)
  • cloud_dog
    cloud_dog Posts: 6,026
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    Thanks.
    That was one of those i'm sure i'm getting something wrong here but not sure what moments. :)
    Also, your maths is out by a factor.

    I'm not sure how you are representing the platform fee percentages but HL is 0.45% and Cavendish is 0.25%.

    (divide your output by 10 and you've got the real costs involved)
    Personal Responsibility - Sad but True :D

    Sometimes.... I am like a dog with a bone
  • cloud_dog wrote: »
    Also, your maths is out by a factor.

    I'm not sure how you are representing the platform fee percentages but HL is 0.45% and Cavendish is 0.25%.

    (divide your output by 10 and you've got the real costs involved)
    Oops it's 0.0045% isn't it.

    It's been a long time is my excuse that i'm sticking to. haha.
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