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Best SIPP for passive investor?

racing_blue
racing_blue Posts: 961 Forumite
Edited this twice already to refine the question, sorry.

I appreciate that as a result of RDR, many SIPP providers are moving from charging a flat fee to charging a percentage fee.

Currently I hold just one fund within my Hargreaves Lansdown SIPP, this is Vanguard Lifestrategy 100% equity accumulation.

HL are changing their fee from £2 per month to 0.45% per year. Which in my position is much less attractive.

Can I do better than HL & Vanguard? How & where do I find out if there are platforms offering a fixed annual fee rather than a percentage fee?

Any pointers gratefully received.
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Comments

  • kidmugsy
    kidmugsy Posts: 12,709 Forumite
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    It's worth checking Alliance Trust Savings; I read somewhere today that they are particularly good for Vanguard. N.B. they have just announced a transfer-in reward.
    Free the dunston one next time too.
  • dunstonh
    dunstonh Posts: 118,565 Forumite
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    Can I do better than HL & Vanguard?

    Yes. Pretty much most modern personal pensions would be better.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Agree with Dunstonh. If you only want to invest in passive managed funds, then a SIPP is an expensive way to do it. Just about all personal pensions offer a range of passive funds, in a simpler product, without the SIPP frills. Those frills are effectively not applicable if you only want passive investments, so you're paying for frills you don't want and are not using.

    I'd suggest a low-cost personal pension to accumulate capital, then - at a later date - transfer that to a SIPP if you find you want the SIPP frills later
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • Hi dunstone or debt free chick

    Can you name one of these low cost pensions as an example?

    Thanks
  • Just to add - I'm struggling to understand why I wouldn't just open a SIPP with someone like Interactive Investor and buy whatever I would want from there ?

    I'm not saying above is correct just want to understand the pro's and con's really
  • Sorry keep thinking of questions...

    If I did open an account with ii then I presume I could create a pension account for my wife too and link the accounts to save money - she is not currently working but I presume I could invest the stakeholder pension amount there ?
  • jem16
    jem16 Posts: 19,494 Forumite
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    Hi dunstone or debt free chick

    Can you name one of these low cost pensions as an example?

    Thanks

    Try looking at the Personal Pensions on Cavendish Online.
    Just to add - I'm struggling to understand why I wouldn't just open a SIPP with someone like Interactive Investor and buy whatever I would want from there ?

    With a SIPP you are generally paying more for the features that you are not using. You basically need to compare the charges.
  • Linton
    Linton Posts: 17,929 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    Just to add - I'm struggling to understand why I wouldn't just open a SIPP with someone like Interactive Investor and buy whatever I would want from there ?

    I'm not saying above is correct just want to understand the pro's and con's really


    You can. Its simply a matter of finding something that provides access to the investments you want at a charge you are happy to pay. Not all options provide access to all investments, those that provide the broadest range may have higher costs than those that dont.
  • Many personal pensions offer a wide range of funds, not limited to those managed by the provider itself. As an example - and I'm not suggesting this is the best option, as I'm not an adviser - here is the range of funds you can choose from under a Standard Life Personal Pension.

    My point about using a personal pension is where you simply want to invest in "funds" then a SIPP offers no real advantage. A range of funds to choose from is standard in a personal pension - there is no "self investment", which is what a SIPP seeks to offer.

    As others have said, if you simply want to invest in funds, then find the lowest cost option to do that and don't pay SIPP charges for features that you don't want and are not going to use.

    In any event, you can always transfer - or with some providers upgrade/convert - to a SIPP a later date.
    Warning ..... I'm a peri-menopausal axe-wielding maniac ;)
  • mania112
    mania112 Posts: 1,981 Forumite
    Part of the Furniture Combo Breaker
    edited 18 January 2014 am31 11:20AM
    In my opinion, at the moment the best pension in terms of Cost + Performance + Service = Scottish Life pension portfolio

    Cost 0.5% pa (dropping to 0.4% at £50k (i think) and again to 0.26%) including the cost of internal funds.

    Their internal funds have been performing very well, 20%+ for UK Equity and Mid Cap.

    They also have a range of pre-packed risk-rated 'governed' portfolio's which can also include lifestyling so they de-risk towards retirement.

    Also, the service has always been good, for me.
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