Can anyone point me in the direction of the lowest cost tracker pensions.

paul5046

Hello,

I've done a google search, but its not as easy as i thought. I'm looking for a low cost FTSE tracker pension, open online, then set up a monthly contribution.

Can anyone provide me with some links.

thanks
Paul.

gadgetmind

Maybe start here?

http://monevator.com/category/investing/passive-investing-investing/

mania112

http://www.cavendishonline.co.uk/pensions/personal-pensions/

Aviva and Friends Life seem to be the cheapest with 0.7% pa for the pension and 0% for their UK Equity Fund.

They're not FTSE Trackers exactly, they don't mirror the top 100, they're a selection from the FTSE All-Share Index:

Aviva: http://www.fundslibrary.co.uk/fundslibrary.dataretrieval/documents.aspx?user=Aviva_lifecust&type=packet_lp_fund_unit_doc_factsheet&Lipper=77003370

Friends Life: http://factsheets.finexprestel.com/frie/_0353395.pdf (i think this is the right one)

paul5046

mania112 wrote: »

http://www.cavendishonline.co.uk/pensions/personal-pensions/

Aviva and Friends Life seem to be the cheapest with 0.7% pa for the pension and 0% for their UK Equity Fund.

They're not FTSE Trackers exactly, they don't mirror the top 100, they're a selection from the FTSE All-Share Index:

Aviva: http://www.fundslibrary.co.uk/fundslibrary.dataretrieval/documents.aspx?user=Aviva_lifecust&type=packet_lp_fund_unit_doc_factsheet&Lipper=77003370

Friends Life: http://factsheets.finexprestel.com/frie/_0353395.pdf (i think this is the right one)

I was hoping for something lower than 0.7%. Thanks for the link though.

gadgetmind

Friends Life have a couple of funds that use active asset allocation on top of (mostly) Blackrock trackers. Dunno if you can get access to these Balanced Index Fund of Funds via Cavendish but one of them forms the backbone of my group personal pension.

gadgetmind

paul5046 wrote: »

I was hoping for something lower than 0.7%.

Difficult to achieve for a smaller pot due to fixed platform charges.

My wife's SIPP uses a Vanguard Lifestrategy tracker held with Hargreaves Lansdown for £24 pa on top of Vanguard's fees. These trackers are "all in one" global trackers that can incorporate varying percentages of bonds.

paul5046

Okay thanks. The Scottish Life one does drop to 0.5 once the pot reaches 28k.

mania112

paul5046 wrote: »

I was hoping for something lower than 0.7%. Thanks for the link though.

Not sure that would be possible online, but through an IFA you could.

I think you'd be able to get it as low as 0.43% (I know we can, I think that's as low as i've seen)

EDIT: Which is 0.25% for the Aviva Wrap and 0.18% for the Vanguard tracker, if you were wondering. Off the shelf the Wrap costs more.

BLB53

Why not go down the diy route? Open a sipp with the likes of sippdeal (www.sippdeal.co.uk) then invest in some Vanguard trackers or suchlike outlined on Monevator -

http://monevator.com/cheap-vanguard-index-funds/

£50 per year custody charge is all you pay.

Worth looking into imo.

gadgetmind

mania112 wrote: »

I think you'd be able to get it as low as 0.43% (I know we can, I think that's as low as i've seen)

It all depends on how that breaks down to fixed charges versus percentage charges.

We pay less than that for our SIPPs (using mainly Vanguard trackers) but that's because we've shopped around and don't have the hungry mouths of IFAs to feed.

mania112

gadgetmind wrote: »

It all depends on how that breaks down to fixed charges versus percentage charges.

We pay less than that for our SIPPs (using mainly Vanguard trackers) but that's because we've shopped around and don't have the hungry mouths of IFAs to feed.

My example would be 0.93% pa if you wanted to feed the hungry mouths of IFA's (assuming the IFA wanted to snack on 0.5% pa).

Unfortunately RDR has failed to force IFAs/Providers/Fund Managers to charge customers a fixed fee, rather than a percentage (surely something they initially intended to do).