Difference between a SIPP, PP & Stakeholder

kangoora

Can someone enlighten me on the actual differences between these 3 tax wrappers.

I'm intending to set up a pension for my wife using lump sum investments of around £8k/year (before tax relief) for the next six years starting April and wondering which route to go down. She is a BR taxpayer and has no salary sacrifice option.

I doubt we will add much else so any advice on firms providing good value for this type of investment also gratefully received. Will probably buy and hold funds with very little switching apart from rebalancing one or two times a year.

My current knowledge is limited to:

SIPP - biggest variety of investments, more expensive?
PP - Reduced variety of investments compared to PP - but not sure how much reduction - is this cheaper than a SIPP?
Stakeholder - very limited choice of investments, !% fixed charge for x years then dropping to 0.5%?

I expect costs would vary between providers for each product apart from stakeholder.

xylophone

Some comparisons here. http://www.moneysavingexpert.com/savings/cheap-sipps

http://www.moneywise.co.uk/pensions/managing-your-pension/the-best-pension-providers-2014

http://www.money.co.uk/pensions/personal-pension-plans.htm

If your wife paid more into her employer's scheme, would there be a matched contribution?

kangoora

xylophone wrote: »

Some comparisons here. http://www.moneysavingexpert.com/savings/cheap-sipps

http://www.moneywise.co.uk/pensions/managing-your-pension/the-best-pension-providers-2014

http://www.money.co.uk/pensions/personal-pension-plans.htm

If your wife paid more into her employer's scheme, would there be a matched contribution?

Thanks for those links, the Fidelity SIPP looks reasonable if I stick to funds and with no transfer out charges if I do grow it more than expected I can transfer out with no charges (currently) to a fixed fee if needed.

Wife has no pension with her company and they will implement at the latest possible date with the minimum possible contribution. We'll make use of matching contributions when they do start a pension though. This money we are planning to put away is 'surplus' and on top of anything she will be putting in her company pension (when it arrives).

atush

These days Sipps and PPS can be the same re charges. I think it will all depend on the type investments you put in it? Ie some are cheaper for ITs, some are better fro Vanguard, some are better for funds, trackers etc.

Stakeholders I would only use if you were putting in small monthly amts?