Which SIPP??

eski123

I have a pension pot of just over £100k which I would like to put into a draw down SIPP. I am completely bamboozled by all the different charges for admin etc on these accounts. Does anyone have a window into the best (cheapest) schemes? It seems to me pretty much swings and roundabouts - but perhaps someone knows better? Any advice appreciated. Thanks.

dunstonh

I have a pension pot of just over £100k which I would like to put into a draw down SIPP.

Why SIPP?
Stakeholders dont do drawdown so that is an obvious elimination. Personal pensions do. So, what is it about a SIPP that makes it a better option for you?

Does anyone have a window into the best (cheapest) schemes?

There is no one best scheme. It will depend on how and where you are buying, what features/terms and investments you are after.

How do you intend to invest is probably the best place to start as that is where you normally start including/eliminating options.

bigadaj

eski123 wrote: »

I have a pension pot of just over £100k which I would like to put into a draw down SIPP. I am completely bamboozled by all the different charges for admin etc on these accounts. Does anyone have a window into the best (cheapest) schemes? It seems to me pretty much swings and roundabouts - but perhaps someone knows better? Any advice appreciated. Thanks.

Have a read through the monevator website.

zagfles

Google Snowman's spreadsheet for a useful tool to compare platform charges. Also check for reviews as some of the chaper platforms have had horrendous admin problems, as have some personal pension providers.

BLB53

Much will depend upon your style of investing - shares, funds, investment trusts etc.

Here's an article on diy investor which may help?
http://diyinvestoruk.blogspot.co.uk/2016/05/selecting-your-diy-online-broker.html

okydoky

Fwiw, my wife and I both use A J Bell/You Invest, not saying they are the cheapest, can't say they are the best as we have no experience of others, but for straightforward dealing and service standards that do what they say on the tin, they certainly do it for us.

chiny

I retired last year and I just looked for the platform that gave cheap drawdown costs. This won't be appropriate if you are going to be actively managing your pension pot, when all those bamboozling other charges come into play. For my leftover pot of £20k (not the main pensions), this was the mighty Hargreaves Lansdown.

This post may contain nuts, or be entirely nuts and certainly is not decent advice.

coyrls

Working out platform charges is difficult enough but it in my experience it gets even worse when you factor in SIPP drawdown, as there are additional charges and no consistency across platforms. Unfortunately there is really no choice other than to decide what you want to invest in and how you are going to manage drawdown and to then model that against the various platforms. Once you have decided on your drawdown strategy, you should be able to eliminate some high changing platforms fairly quickly and then do the detailed modelling with maybe 3 or 4 platforms.

[FONT=&quot]One personal observation is that you shouldn’t dismiss level of service and reputation from your criteria. In this regard I disagree with Monevator, who thinks charges should be the only factor. I think that for drawdown, which represents your income in retirement, level of service and reputation should be considered. This is not a disguised plug for Hargreaves Lansdown, for my use case they are just too expensive, I use AJ Bell but you should do your own research as, unfortunately, every case is different.[/FONT]

zagfles

coyrls wrote: »

Working out platform charges is difficult enough but it in my experience it gets even worse when you factor in SIPP drawdown, as there are additional charges and no consistency across platforms. Unfortunately there is really no choice other than to decide what you want to invest in and how you are going to manage drawdown and to then model that against the various platforms. Once you have decided on your drawdown strategy, you should be able to eliminate some high changing platforms fairly quickly and then do the detailed modelling with maybe 3 or 4 platforms.

[FONT=&quot]One personal observation is that you shouldn’t dismiss level of service and reputation from your criteria. In this regard I disagree with Monevator, who thinks charges should be the only factor. I think that for drawdown, which represents your income in retirement, level of service and reputation should be considered. This is not a disguised plug for Hargreaves Lansdown, for my use case they are just too expensive, I use AJ Bell but you should do your own research as, unfortunately, every case is different.[/FONT]

Yes - though remember that HL will negotiate on charges. But yes definitely consider the level of service you'll get, how easy it is to change the drawdown amount, whether they'll deal with you direct or tell you to go via an intermediary who'll want a fee, perhaps even a fee every time you want to change your drawdown amount.

Look at reviews of their service, do they have a website setting out clearly what you can and can't do, what the charges are, explanation of how drawdown works and the various options eg phased drawdown, UFPLS etc.

weenie15

Here's a post that might be useful from someone who was moving his pension to drawdown - he makes a comparison between Fidelity, HL and AJ Bell Youinvest.

http://the7circles.uk/moving-into-pension-drawdown-happy-birthday-to-me/