Cheapest Sipp: build yourself a low cost DIY pension article

ducatidemon100

maureenbulman wrote: »

Could anybody please tell me how to post a question on here.Thanking you in advance

Assuming you mean on a different subject than "Cheapest SIPP" I would guess using the link to MSE forums at the top of the page. If here, you have already suceeded - but you could add something in the Title at just above the text box.

dunstonh

ving run a SIPP with Bestinvest (or Worstinvest as I ilke to call them) since 2013, I am a little surprised to see them at the top of the leader board.

Remember that they are a small player and it only focuses on a small part of the market. Its likely that anything that is putting them top has a limited criteria. If its charges then remember that the lowest charge is not a measure of quality or functionality.

dunstonh

Is the lack of drawdown ability in the Cavendish pension anything to worry about, or just a minor inconvenience to remember in 16+ years time? Also, does the fact they don't label it a SIPP matter?

Doesnt matter what they call it. The UK's largest provider of drawdown uses a personal pension. Not a SIPP. SIPPs are only used by a minority of people.

It is strange that Cavendish are not supporting drawdown when their backbone provider does. It possibly suggests a cost issue. Drawdown is more work and maybe Fidelity are not prepared to offer a discount on drawdown. Maybe it is software coding. Fidelity is designed as an intermediary website rather than a DIY site. So, extra coding could be required (which costs).

Any reason you are after Cavendish? Its not as if the Fidelity software is attractive and its not whole of market and it cant be down to low cost (as there are cheaper).

Lungboy

dunstonh wrote: »

Doesnt matter what they call it. The UK's largest provider of drawdown uses a personal pension. Not a SIPP. SIPPs are only used by a minority of people.

It is strange that Cavendish are not supporting drawdown when their backbone provider does. It possibly suggests a cost issue. Drawdown is more work and maybe Fidelity are not prepared to offer a discount on drawdown. Maybe it is software coding. Fidelity is designed as an intermediary website rather than a DIY site. So, extra coding could be required (which costs).

Any reason you are after Cavendish? Its not as if the Fidelity software is attractive and its not whole of market and it cant be down to low cost (as there are cheaper).

On the Cavendish FAQ page is says:
"For the time being it is not possible for clients of the Cavendish Online FundSupermarket Pension to take withdrawals from their pension by going into drawdown. This is because we are not permitted to provide our clients with advice relating to drawdown."
Make of that what you will.

I've been running the numbers on the Snowman spreadsheet and on CompareFundPlatforms.com and Cavendish comes out cheapest on both, so that's what I was basing it on.

dunstonh

"For the time being it is not possible for clients of the Cavendish Online FundSupermarket Pension to take withdrawals from their pension by going into drawdown. This is because we are not permitted to provide our clients with advice relating to drawdown."

Drawdown has been available well over a decade. The improved pension freedom options are now nearly 3 years old. Fidelity offer drawdown on the platform.

This "time being message" is getting old.

I've been running the numbers on the Snowman spreadsheet and on CompareFundPlatforms.com and Cavendish comes out cheapest on both, so that's what I was basing it on.

Cost is a secondary consideration to quality. I suggest you focus a bit more on functionality. Fidelity's software is clunky and awkward and behind the other main platforms. Indeed, a number of personal pensions do it better.

Lungboy

dunstonh wrote: »

Cost is a secondary consideration to quality. I suggest you focus a bit more on functionality. Fidelity's software is clunky and awkward and behind the other main platforms. Indeed, a number of personal pensions do it better.

I must admit the Cavendish website looks pretty basic and crap, but I have no experience with their software so I'll take your word for it. At the sums I'm looking to invest, the difference in cost between Cavendish and HL is only a few £ a year, and HL would get me access to the BlackRock fund at a much reduced price, so that might be a better option.

richjdavies

Another week goes by and a new message from III saying that they haven't opened a SIPP for me! - That's 2 saying they have and 1 saying they haven't.
It's a lot of fun reading through the thread - fun as in makes my blood boil.

Guess I'll go to iweb as this is just too much hassle for me. Going to cost me extra, but still miles better than H&L!

cepheus

richjdavies wrote: »

Another week goes by and a new message from III saying that they haven't opened a SIPP for me! - That's 2 saying they have and 1 saying they haven't.
It's a lot of fun reading through the thread - fun as in makes my blood boil.

Guess I'll go to iweb as this is just too much hassle for me. Going to cost me extra, but still miles better than H&L!

I've just about had enough of Interactive Investor (III) after numerous problems with an Uncrystallised Funds Pension Lump Sum (UFPLS) withdrawal and numerous messages that have gone unreplied. Today was the final straw.

I was with Hargreaves Lansdown before moving to III and had no problems with them, so SIPPs needn't be that complicated.

Can anyone recommend a better provider, that balances efficiency and cost?

BLB53

Can anyone recommend a better provider, that balances efficiency and cost?

I have been with AJ Bell Youinvest (formerly Sippdeal) for the past decade and no problems so can recommend.

Here's an article on DIY Investor relating to Sipp platforms which may help
http://diyinvestoruk.blogspot.co.uk/2016/08/selecting-your-diy-pension-platform.html

Lungboy

There are several websites that compare base platform costs, plus Snowman's spreadsheet, but are there any that go the step further and compare the cost of actually holding specific funds on specific platforms?