Considering a SIPP

webmasterpolo

Hi

I am considering starting a SIPP as an addition to my retirement plan.

I have a group SHP, I am and my employer contribute into. But I want to pay more, but I want more choice than my SHP allows.

I have a paid up personal pension only worth around £1,000 that I also want to consolidate into the SIPP for simplicity.

I will be paying around £300 - £400 per month specifically into the SIPP, but I would like the option of being able to miss a month. I pay 40% tax so consider pensions a large part of my retirement plan.

This will be a long term plan with a 25 year count down.

The reason I am posting is for some pointers on SIPP providers that would suit me. I am most likely to hold UT and OEIC funds, and reserve shares for my ISAs investments. So I'm only looking for the low cost SIPPs.

I am strongly considering SIPPDeal, mainly because of no transfer in fee, or setup fee, and the commission rebate. I have my ISAs with HL, but I don't like the lack of rebate on the HL SIPP.

Any comments or ideas would be very welcome, thank you for reading.

-Web

Loughton_Monkey

I can't recommend any specific SIPP provider. But all I would say is that the tax relief 'leverage' of higher rate tax is enormous. Each £100 invested in the pension provides 67% more in the pot than the same money invested in the same funds within an ISA. So provided you can engineer only 20% tax in retirement, you are getting 67% more on the 25% lump sum, and 33% more on the income [annuity].

It really makes sense to pay enough into pension so as to avoid 40% tax for as long as you can.

CannySaver_2

Hi

Take a look here:

http://www.!!!!!!.uk/sipp-zone/

Long list of SIPP providers covering charges, investment flexibility plus other information you migh find useful.

Should help you narrow down your choice.

The Canny Saver

webmasterpolo

Thanks for the replies. I understand the tax advantages and the positive benefit they will have for my plan, unfortunately I cannot afford to pay enough in to bring myself out of the higher rate tax bracket altogether, but it will certainly help.

I have already read various websites including the investment sense site posted. I'm really narrowing the field based on low charges and mainly the commission rebates. The ability to transfer in my old £1K is a bonus, but not a big issue.

1. Low cost
2. Commission rebate.

There aren't many that do both.

-Web