SIPP/ SSAS setup/administration

Robt800

Hi,

I'm just looking to setup a SIPP/ SSAS for myself and my wife as part of our limited company. I've already saught an IFA, but after consultation I have some reservations/ queries. Please be kind if my questions seem very basic!

I was advised SSAS are cheaper to setup - but that doesn't necessarily seem the case. I've had a look online trying to gather costs with regards setting up a SSAS and they seem to vary (the prices I can find anyway) between £900-£3k. Does this seem typical?

Then I see many direct platforms offering SIPPs - HL, barclays stock brokers etc. and their fees seem to be in the order of £125-250/ year plus a small percentage (0.25%ish). Now comes silly question - would I still need someone to administer the pension (trustees?) for me if I were to use HL etc. or would their fees look after any reporting etc.?

My IFA was keen for to invest in one of their funds, but with fees of 2-3% it seemed rather expensive to me?

My plan is to invest mainly within ETF/ mutuals etc. and I'm happy to research myself on that basis - I just want a tax efficient wrapper to make the most of the investment.

Thanks for any assistance

dunstonh

I was advised SSAS are cheaper to setup - but that doesn't necessarily seem the case. I've had a look online trying to gather costs with regards setting up a SSAS and they seem to vary (the prices I can find anyway) between £900-£3k. Does this seem typical?

The expectation would be for a SSAS to be more expensive than a SIPP or personal pension.

Then I see many direct platforms offering SIPPs - HL, barclays stock brokers etc. and their fees seem to be in the order of £125-250/ year plus a small percentage (0.25%ish). Now comes silly question - would I still need someone to administer the pension (trustees?) for me if I were to use HL etc. or would their fees look after any reporting etc.?

DIY platforms handle the pension administration but would require you to make the investment decisions.

My IFA was keen for to invest in one of their funds, but with fees of 2-3% it seemed rather expensive to me?

IFAs do not offer their own funds. The have the whole of market available to them and this includes exactly the same investments you get on HL, for example. It could also include a lot cheaper (than HL as an example). Are you sure this was an IFA and not an FA? FAs can offer their own funds.

My plan is to invest mainly within ETF/ mutuals etc. and I'm happy to research myself on that basis - I just want a tax efficient wrapper to make the most of the investment.

Mutual is an American term that is not used widely over here. However, if you intend to run your own investment portfolio then use a DIY provider. However, expect it to be a SIPP and not a SSAS or PPP.

xylophone

http://monevator.com/compare-uk-cheapest-online-brokers/


You have seen this?

http://www.hl.co.uk/company-pensions

You choose your investments and manage your SIPP.

Robt800

dunstonh- Thanks very much for the comprehensive reply - just what I was looking for! and yes looks like your correct - their title is associate financial consultant.

xylophone- thanks for the links.

So it looks like a SIPP is the way to go. Just as a double check - are their any major pitfalls to going for a SIPP as opposed to the a SSAS? Mind they would need to be major as the cost savings are major.

xylophone

http://adviser.royallondon.com/technical-central/pensions/investment/ssas-versus-sipp/

Robt800

Xylophone - thank you again!