To Sipp or not to Sipp?

hermionesaver

So it turns out that my employers pension scheme is a zurich stakeholder one. My employer will match contributions up to 1.5%. However I'm not sure if I will qualify for it because my income is only around £2000 per year and in the details from zurich it states that "Pensionable salary under the Standard Section is restricted to Qualifying Earnings, which for the 2015/2016 (last years info I know) tax year is gross earnings between £5824 and £42,385 per annum"

So does this mean I do not earn enough to qualify for the pension scheme?

cashbackproblems

hermionesaver wrote: »

Yes I realise this but the £100 was very tempting and I will use it towards my house deposit. It's better than just spending the money which is what usually happened before I opened it.

Just to give you an idea, i pay monthly into trackers through HL and they have total charges per annum of just 0.08% and another is 0.15%. but given how little you have paid in its not an issue. But i agree £10pm is pointless and will probably pay for a 2/3 holidays in retirement nothing else.

bigadaj

cashbackproblems wrote: »

Just to give you an idea, i pay monthly into trackers through HL and they have total charges per annum of just 0.08% and another is 0.15%. but given how little you have paid in its not an issue. But i agree £10pm is pointless and will probably pay for a 2/3 holidays in retirement nothing else.

What about HL's 0.45% fee?

hermionesaver

cashbackproblems wrote: »

Just to give you an idea, i pay monthly into trackers through HL and they have total charges per annum of just 0.08% and another is 0.15%. but given how little you have paid in its not an issue. But i agree £10pm is pointless and will probably pay for a 2/3 holidays in retirement nothing else.

It's not my intention to only pay in £10 a month until retirement. That is what I can pay now. In the future I will save more in a different account/tracker S&S ISA whatever is the best option when the time comes.

The £10 a month in my S&S ISA was only mentioned as a brief overview as to what I am doing right now. The main reason started this thread was to ask about SIPPS. Which if I open one will be paid into maybe once or twice a year with lump sums.

cashbackproblems

bigadaj wrote: »

What about HL's 0.45% fee?

what 0.45% fee….for funds there are no fees only the fund fees.

greenglide

The .45% charge is for funds.

There is no custody charge for shares, investment trusts etc (so that would include ETFs) but instead a £11.95 dealing charge.

jamesd

greenglide wrote: »

There is no custody charge for shares, investment trusts etc (so that would include ETFs) but instead a £11.95 dealing charge.

"Shares, investment trusts, ETFs, gilts & bonds": "0.45% a year (Capped at £200 a year across all holdings in the account)". This is the SIPP, not the fund and share account. For shares and ITs SIPP and ISA holders get both the dealing charge and the 0.45%.

cashbackproblems wrote: »

what 0.45% fee….for funds there are no fees only the fund fees.

There are two types of funds, the older inclusive funds that don't have the 0.45% fee and the newer unbundled ones that do have the 0.45% fee but also have lower fund charges because they no longer have to pay commission to HL. Usually the unbundled ones are cheaper or the same total price including fee but not always.