Cheapest Sipp: build yourself a low cost DIY pension article

sydney2002

Currently have a company pension where I pay in 6% my salary and the company match it.

Questions are:
1. Can I transfer my current pension pot into a SIPP ?

2. Can I transfer PART of the pot into a SIPP, and let the company pension continue to run with the existing 6% being paid in by me and the company ?

3. Can I also pay whatever I want into my SIPP, whilst still paying 6% my salary into the company scheme ?

4. I dont suppose the company will pay their 6% into my SIPP will they, it must go to the company scheme yes

Just some questions that I keep asking myself, so thought I would post them on here !

dunstonh

1. Can I transfer my current pension pot into a SIPP ?

yes. However, you would lose the employer contribution (caveat to q2)

2. Can I transfer PART of the pot into a SIPP, and let the company pension continue to run with the existing 6% being paid in by me and the company ?

At the discretion of the employer scheme.

3. Can I also pay whatever I want into my SIPP, whilst still paying 6% my salary into the company scheme ?

Subject to annual allowance and earnings (at least as far as tax relief is concerned)

4. I dont suppose the company will pay their 6% into my SIPP will they, it must go to the company scheme yes

small companies with a couple of employees may well prefer to pay to your own plan. However, large companies wont.

sydney2002

dunstonh wrote: »

Subject to annual allowance and earnings (at least as far as tax relief is concerned)

Thank you for your quick reply. Regards to the point above, what are the allowance;s subjected upon me here ?

dunstonh

sydney2002 wrote: »

Thank you for your quick reply. Regards to the point above, what are the allowance;s subjected upon me here ?

100% of earnings capped at £50,000 (there is a carry forward facility to go above this if you are looking to go higher per year)

Cambridge_MJ

Anyone got an opinion on the respective service level of HL and SIPPdeal (AJ Bell). I'm looking to set up a SIPP to deal directly in shares, IT and ETF (UT are a no no given their excessive charges).

dunstonh

HL's platform is bundled and relies on commission on funds for its pricing. It is not priced with direct assets in mind. However, that will change in 2013 when it's charges go up. You need an unbundled platform (i.e. one not relying on commissions to fund it)

Reaper

Cambridge_MJ wrote: »

Anyone got an opinion on the respective service level of HL and SIPPdeal (AJ Bell). I'm looking to set up a SIPP to deal directly in shares, IT and ETF (UT are a no no given their excessive charges).

I am just in the process of moving my SIPP from HL to Sippdeal because HL's charges not only worked out higher for what I wanted to invest in but are about to get worse due to changes they are currently putting through. I suspect you too will find them cheaper based on what you are planning to invest in, but do read the charges sheets for both to make sure.

As to your question about service. HL's service was good. I can't comment on Sippdeal yet other than the transfer process which has been simple enough so far.

GrizzlyAdams_2

Is it still true that you cannot invest in a residential property with a SIPP?

dunstonh

GrizzlyAdams wrote: »

Is it still true that you cannot invest in a residential property with a SIPP?

Thankfully yes. That daft idea never came to fruition.

gadgetmind

GrizzlyAdams wrote: »

Is it still true that you cannot invest in a residential property with a SIPP?

You can invest in a residential property development to shell level, which means you need to sell before interiors and services are done. You can also do this via a syndicate if your own SIPP won't cover a house or block of apartments.

I looked long and hard at doing this as part of building a house on some spare land but valuation complexities (land and shell) finally convinced me to keep it simple.