Standard Life SIPP opinion

GETAGRIP_5

I am considering transferring some of my stakeholder pension pot into a SIPP in order to increase accessibility to funds (no intention at mo for individual shares, commercial property)
IFA is pushing Standard Life SIPP.

I have a couple of questions..

1) Attention Dunstonh! On the thread below you said with this SIPP the first thing that comes to mind is a missale. Why? (thanks!)
Ooops not allowed to do link as first post so will quote........

dunstonh wrote: »

The minute someone mentions Standard Life SIPP, the first thing that comes into my head is mis-sale. However, as you are buying it without advice, that wouldnt be an issue.

2) Is anybody here using this SIPP and if so how are they finding it? Charges ok?

Thanks

dunstonh

On the thread below you said with this SIPP the first thing that comes to mind is a missale. Why?

Most of the ones I have come across have seen people invested in internal funds but on charges that are higher than stakeholder. They are not using the SIPP features but are paying for them. So, why pay them?

I have successfully put in complaints on quite a few Std Life SIPPs and had each one upheld. The problem with generalisations is that you tarnish all the good ones with the bad. However, my mentality is just as I said. If I see Std Life SIPP I do think mis-sale unless proven otherwise. Plus, it is my opinion (and one that is shared with many), that SIPPs are oversold and over bought by people that just dont need a SIPP.

On an admin point of view, the SL external funds are not the unit trust funds but SL versions of them. If you are going to use a SIPP for funds then you should at least be using the retail unit trust funds.

2) Is anybody here using this SIPP and if so how are they finding it? Charges ok?

The charges are set by the adviser mostly so you could have one done a lot cheaper than another. So, don't rely on other people's view of charging. Look at yours in isolation.

If you have a SIPP illustration, then look for the reduction in yield figure. It will be near the back and in the area that shows the values over the years. It will say something like the effect of charges will bring a 7% p.a. return to 5.9% .

A stakeholder at 1% p.a. AMC (your default option effectively that all IFAs have to include as an option in their research) would have a reduction in yield (RIY) of 1.1% bringing 7% to 5.9%.

You can get personal pensions that are cheaper and some products have fund based discounts that can bring it better as well. However, if you start to include external funds the charges will go up and the reduction in yield will increase. A mixture of internal and external funds in a portfolio on a personal pension should still see the figure stay above 5% if its fairly priced. If you are in the 4% range or lower than its very expensive. You then have to ask yourself if you are getting value for what you are paying. the answer may be yes but it may also be no.

What is the reduction in yield figure on your illustration and what investment funds are beng recommended?

GETAGRIP_5

Your reply is much appreciated.
Thanks for the clarification on misselling issue.

I do not have a SIPP illustration to look at reduction in yield figure.
I am in the very early planning/decision making stage still.
The charges i was asking about were amc and/or dealing charges rather than cost of transfer. I am conscious of the need to keep charges to a minimum so your comments on reduction in yield tie in with this and will note for reference.

1) I am interested in your comment about SL external funds being their version and not the retail unit trust fund. What is the difference and if not obvious why does it matter?

2) So I want to take transfer some of pension pot out of NU funds into external funds. I have no intention of investing in anything other than funds.
Lets say i wanted a mix of Aberdeen, Black Rock & Invesco funds are you suggesting it might be cheaper to set up a PPP rather than a SIPP?

Thanks

EdInvestor

The StdLife SIPP is expensive.The SL versions of the unit trusts have higher charges than the real thing.

Suggest you look at https://www.h-l.co.uk or https://www.sippdeal.co.uk

They will give you access to the funds you want.A PP may do the same but it probably won't offer you much cost , if any, advanatge and comes with all the bureaucratic inefficiency of dealing with lifecos (undoubtedly the worst organised financial institutions on the planet )