Scottish Widows Retirement Account compulsory £650 fee

Kua

Sorry I think I've been getting mixed up with my terminology. Let's call HL's 0.45% fee a platform charge. In that case something like Cavendish is cheaper, their platform charge is 0.3% (which includes what they call an online fee).

But with HL my average contribution per month will be less than 50p in the first year, rising to £1.35 in the second. With the flexibility I get in a SIPP, I think its worth paying a few pence extra.

I'm struggling to find a personal pension that has no platform charge at all, as some have intimated.

Kua

SallyG wrote: »

http://www.moneymarketing.co.uk/news-and-analysis/wrap-and-technology/hargreaves-and-charles-stanley-defend-pre-filled-fund-choices/2012102.article

SIPP Lite?

Always wondered if I could hack the DIY decisions in a SIPP - now we're spoon-fed.

Whole point of a SIPP is you choose for yourself

dunstonh

SallyG wrote: »

http://www.moneymarketing.co.uk/news-and-analysis/wrap-and-technology/hargreaves-and-charles-stanley-defend-pre-filled-fund-choices/2012102.article

SIPP Lite?

Always wondered if I could hack the DIY decisions in a SIPP - now we're spoon-fed.

That is bad. I suspect the FCA wont like that either as its leading people to have an outcome that may be unsuitable. Also, why are those funds chosen? HLs own funds you understand as they earn more from it. I wonder if the others were chosen to try and ensure at least a certain amount of money goes that way to qualify for superclean pricing. Neither of which would be justifiable in my opinion for picking investments.

dunstonh

Kua wrote: »

Sorry I think I've been getting mixed up with my terminology. Let's call HL's 0.45% fee a platform charge. In that case something like Cavendish is cheaper, their platform charge is 0.3% (which includes what they call an online fee).

But with HL my average contribution per month will be less than 50p in the first year, rising to £1.35 in the second. With the flexibility I get in a SIPP, I think its worth paying a few pence extra.

I'm struggling to find a personal pension that has no platform charge at all, as some have intimated.

HL's platform charge is in addition to the investment charge (and all the other charges they can make).

Most personal pensions are not platform based. A few are. So, most personal pensions do not have a platform charge/product charge but price on the fund used.

Kua

dunstonh wrote: »

HL's platform charge is in addition to the investment charge (and all the other charges they can make).

Most personal pensions are not platform based. A few are. So, most personal pensions do not have a platform charge/product charge but price on the fund used.

But I'm investing solely in trackers (so low management fee) and there is no charge for investing in a fund according to this: http://www.hl.co.uk/pensions/sipp/charges-and-interest-rates

Fund dealing
Online, phone and post dealing
(unit trusts and OEICs)
No charge
We also offer up to a 5.5% saving on the initial charges made by the fund manager"

What am I missing here??

jem16

Kua wrote: »

Sorry I think I've been getting mixed up with my terminology. Let's call HL's 0.45% fee a platform charge. In that case something like Cavendish is cheaper, their platform charge is 0.3% (which includes what they call an online fee).

Yes Cavendish are introducing a new pension through Fidelity where Fidelity take 0.25% and Cavendish take 0.05% thus making 0.3%. This is obviously cheaper than HL's 0.45% platform charge.

However in both these cases you then have to add in the cost of the fund you choose, which can be anywhere from 0.07% to 0.75% via Cavendish through Fidelity. You don't seem to be accounting for this charge at all.

But with HL my average contribution per month will be less than 50p in the first year, rising to £1.35 in the second. With the flexibility I get in a SIPP, I think its worth paying a few pence extra.

The Cavendish Online new offering will be a SIPP - offered through Fidelity Funds Supermarket. So what extra flexibility are HL offering you?

I'm struggling to find a personal pension that has no platform charge at all, as some have intimated.

Personal Pensions don't have platform charges as they are not on a platform in most cases. The charge for a Personal Pension includes the cost of their internal funds with an extra charge if you want to include external funds.

jem16

Kua wrote: »

But I'm investing solely in trackers (so low management fee) and there is no charge for investing in a fund according to this: http://www.hl.co.uk/pensions/sipp/charges-and-interest-rates

Fund dealing
Online, phone and post dealing
(unit trusts and OEICs)
No charge
We also offer up to a 5.5% saving on the initial charges made by the fund manager"

What am I missing here??

You're missing the actual cost for the fund itself. Look at the last 2 columns here;

http://www.hl.co.uk/funds/index-tracker-funds/view-index-tracker-funds

Kua

dunstonh wrote: »

SIPPs are far more complicated usually. They often have pages of charges for various tasks and admin duties that are not charged on a personal pension. Look at: http://www.hl.co.uk/pensions/sipp/charges-and-interest-rates You dont get those sorts of charges on personal pensions. This is not picking on HL. That is normal for SIPPs.

OK I understand that this may be a factor. But the plan is to let the money sit.

Still not yet convinced that I shouldn't go for a SIPP... But am taking onboard what you say about not having enough knowhow to go for a SIPP!

Kua

jem16 wrote: »

You're missing the actual cost for the fund itself.

No I understand there is a charge for the fund. But isn't this the same no matter whether you get it in a SIPP or a Personal Pension. Ergo, this is not a factor.

Just seen the link you posted: Again, doesn't that % apply whatever pension package you use. And in any case I have that info available so can avoid those with high charges...

jem16

Kua wrote: »

No I understand there is a charge for the fund. But isn't this same no matter whether you get it in a SIPP or a Personal Pension. Ergo, this is not a factor.

That's what we're trying to tell you. A PP includes the cost of the fund. With a SIPP the cost of the fund is in addition to the platform charge and other SIPP charges.

So yes go for a SIPP if that's what you really want but you need to be aware of exactly how the charges work.