Warning re Stakeholders/Personal Pension vs SIPPS

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
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  • [Deleted User][Deleted User] Forumite
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    whoops cheerfulcat. Thank you. Post now edited. Brain and fingers were not engaged when I was typing
  • cheerfulcatcheerfulcat Forumite
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    Ah, it was a SIPP :-) (I should have guessed, really! ). Are the AIM shares treated separately from the rest of the fund for IHT purposes, then? As that opens some very interesting avenues...
  • EdInvestorEdInvestor
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    My point is that it would seem to be a waste of a perfectly good pension wrapper ( ISA or pension ) to put into it investments which would be free of further tax anyway.

    You can keep an HYP completely outside any tax wrapper, as long as you're a basic rate taxpayer and you never sell the shares: but most people do like to protect their HYPs from CGT one way or the other, in that you never know what the future might bring. No problem with the divis of course.
    Trying to keep it simple...;)
  • EdInvestorEdInvestor
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    http://ukgroup.standardlife.com/content/news/articles/2005/a_day_opp281105.html

    I see Standard Life has now launched a Group SIPP for company schemes.It will include all bells and whistles, but you can a simple stakeholder pension lookalike if you want at first and move on to the more sophisticated aspects later on.
    Trying to keep it simple...;)
  • dunstonhdunstonh Forumite
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    EdInvestor wrote:
    http://ukgroup.standardlife.com/content/news/articles/2005/a_day_opp281105.html

    I see Standard Life has now launched a Group SIPP for company schemes.It will include all bells and whistles, but you can a simple stakeholder pension lookalike if you want at first and move on to the more sophisticated aspects later on.

    From my discussions with a number of providers, it seems that the ability to switch between stakeholder, personal pension and SIPP at no cost is going to be a common approach.
    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.
  • dunstonhdunstonh Forumite
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    That is what is so wrong with the media giving financial advice. You have a reporter writing about the advice given by three advisors and chops and changes between those advisors Consequently, you get bits of misinformation and editing which makes the article go from giving advice to offering opinion. The two things getting mixed up at times. The editing would no doubt have a lot to do with that. Chances are the SIPP bit was included as its fashionable for the media at present and that the stakeholder reference was removed.
    This figure also assumes her money is invested well - Yearsley suggests that Katie joins her company pension scheme, or opens a self-invested personal pension (Sipp).

    He hasnt a clue whether she has an occupational pension scheme or not and if she does, what type it is and what benefits it offers.

    Plus by not mentioning stakeholder pensions, he has fallen foul of FSA rule RU64 which would result in a upheld complaint if it had been a real review.
    Bowes says that, despite Katie's cautious attitude, her pension contributions should have at least some exposure to the stock market, as over the longer term this is the asset class that is likely to produce the highest returns.

    Its all very well us knowing that and then discussing it but if someone is adamant that they are cautious, then the investment porfolio has to be made up that way. Its no point agreeing she is cautious and then giving her a higher risk portfolio. That would result in another upheld complaint.

    Recommending a SIPP to an investment novice is no problem at all. Providing that is, that the SIPP is being reviewed under contract with the IFA. You could also argue that a cautious investor would be better placed with a stakeholder or personal pension where the lower fund charges would suit the lower potential returns that the low risk asset classes would average out.
    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.
  • EdInvestorEdInvestor
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    dunstonh wrote:
    From my discussions with a number of providers, it seems that the ability to switch between stakeholder, personal pension and SIPP at no cost is going to be a common approach.


    It's all very well this sudden great enthusiasm for putting everyone in an all- purpose flexi-SIPP, but what about all the protected rights money in the system?

    PR money isn't allowed in SIPPs.

    How many existing pensions are a mixture of PR and non-PR money? Recipe for chaos I'd have thought.
    Trying to keep it simple...;)
  • EdInvestor wrote:
    How many existing pensions are a mixture of PR and non-PR money?

    Well, the answer to that is none: protected rights money is always kept in a separate arrangement. Nevertheless, you can operate pension fund withdrawal from protected rights, and many SIPP providers offer virtually seamless administrative support for the two types of pension money.
    oceanblue is a Chartered Financial Planner.
    Anything posted is for discussion only. It should not be taken to represent financial advice. Different people have different needs, and what is right for one person may not be right for another. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser; he or she will be able to advise you after having found out more about your own circumstances.
  • EdInvestorEdInvestor
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    We're not talking about drawdown.I'm asking how will insurance companies deal with pension funds containing PR money if they plan to offer SIPPs to the masses? Split them in two?
    Trying to keep it simple...;)
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