SIPP Wrapper

Size66

My financial advisor is talking about a SIPP Wrap for most of my pensions ( those with Zero or low tsf fee's ) my advisor is lycetts and they talk of a sipp platform via standard life -- is this concept something new and useful or a fad that will do me no good?
I am a pretty high earner have 5 pension funds built through various employer schemes over the years which cumulatively don't look to be worth much when I retire ( im now 50 yrs old )

bigadaj

Sipps are just a type of pension, as ar personal pensions or stakeholder pensions. They have historically been used by wealthier and higher earning people as they have offered a wider range of investment options at a higher costs, more recently the differ ex have become blurred oarticuallry between sipps and personal pensions.

If you have other pensions then you're adviser needs to take account of these in terms of your sipp, and really should advise on their appropriateness as part of your service. Unless they are defined benefit schemes or have guarantees then older pensions are frequently costly, poorly performing and inflexible so a review of those would be worthwhile.

dunstonh

is this concept something new and useful or a fad that will do me no good?

SIPPs have been around for donkeys years. They were a niche product and to some extent still are. They are for more advanced investments than your conventional pension options. Those being personal pensions and stakeholder pensions. Stakeholder pensions have gone from the main use product to a niche one with very limited use nowadays. Indeed, they are largely obsolete for most. Personal pensions are the dominant product.

Investment platforms tend to use personal pensions or SIPPs as their wrapper. The only real difference is the level of FSCS protection. However, if you are using unit linked funds, that is largely irrelevant.

The FCA will say that generically, SIPPs are a more expensive option and not suited for most. Problem is that they are behind the times and you can get low cost SIPPs nowadays. However, if you were Mr & Mrs average with a relatively small pension and no investment knowledge and no adviser, then you should not go anywhere near a SIPP. If you have an IFA or are you are an experienced DIY investor then SIPP will be used more often than not.

Investment platforms have been around over 15 years. They dominate the distribution nowadays.

xylophone

5 pension funds built through various employer schemes over the years

What kind of schemes? Defined Benefit/ Defined Contribution?
What does your current employer provide?

After September this year, obtain a State Pension Forecast to help with retirement planning. https://forums.moneysavingexpert.com/discussion/5367287 post 458

BananaRepublic

A SIPP wrapper can actually work out cheaper. My last job came with an L&G Stakeholder with index funds, which was more pricey than a SIPP with equivalent funds. I'd look into the Standard Life SIPP if I were you, and find out why they suggest that one rather than one of the names often mentioned here. I'd also check to see if your IFA will be charging a yearly 'managment fee' on the funds in the SIPP, even though you will pay an upfront fee for advice.

The great thing about a SIPP is that you can move all your pensions into it, and then see all the funds from one web site, with one set of password data. You also tend to get a much wider range of funds to buy from. Some of the Standard Life funds are dogs, although their SIPP may give broader access. I had a couple of Standard Life personal pensions and I still have a stakeholder as that is what my current employer provides, unfortunately.