Cheapest SIPP provider for non-earner

Thrugelmir

zolablue25 wrote: »

Thanks dunstonh. I'll have to have a better search for providers.

SIPPS have become the fad after a period of high returns. As if it's easy when investing to make money. Without a sizable sum it's difficult to build a fully diversified portfolio that covers all eventualities.

zolablue25

Thrugelmir wrote: »

SIPPS have become the fad after a period of high returns. As if it's easy when investing to make money. Without a sizable sum it's difficult to build a fully diversified portfolio that covers all eventualities.

That's why it was my intention to use a diversified fund within the SIPP.

Tom99

I think maybe Cavendish would be the cheapest at 0.25%. They don't do drawdown but I don't think they charge a fee to transfer elsewhere when the time comes.

cloud_dog

AnotherJoe wrote: »

If you are going to definitely buy Vanguard then I'd wait a while and see if Vanguards proposed SIPP appears, rumours were it would be late this year.

I see Vanguard have changed their default information from late 2018 to 'shortly'.... mmmm.

Thrugelmir

cloud_dog wrote: »

I see Vanguard have changed their default information from late 2018 to 'shortly'.... mmmm.

Suggest 2019. Live from the start of the new tax year perhaps seem most opportune.

p00hsticks

Is your wife on track for a full state pension ?
She can check her personal forecast here ...
https://www.gov.uk/check-state-pension


If she still needs NI years going forwards then paying for those would probably be the first point of expenditure before investing in a personal pension

squirrelpie

I see Vanguard have changed their default information from late 2018 to 'shortly'.... mmmm.

Interesting. Maybe they'll wait until the post-brexit situation is clear?

dunstonh

squirrelpie wrote: »

Interesting. Maybe they'll wait until the post-brexit situation is clear?

It may have a small impact as many of Vanguard's funds are domiciled outside of the UK and they use passporting permissions to retail them in the UK. Passporting is ending with Brexit. Its replacement is not yet known. Plus, FSCS protection is not yet sorted in a no-deal scenario.

There is also an ongoing court case which affects SIPP providers which could have a significant impact on costs. Along with the increased solvency requirements. This may make PPPs or a master trust scheme cheaper to offer than SIPP (PPPs dont have to offer insured funds as they can be insured at contract level). Plus, having a SIPP that only invests in Vanguard funds is a bit of a weak option.

It is also possible that Vanguard have realised that they are picking up high levels of DIY investors but with low value. Larger investors are unlikely to want to use Vanguard directly. So, the cross-subsidy spread may not be as much as they hoped and with the increased costs of offering the pension wrapper, it may be that they are thinking carefully about costs. Or maybe the ISA offering has not been as successful as hoped (now that others can undercut them)

Vanguard apparently use FNZ as the software provider and FNZ already supports SIPPs. So, software is certainly not going to be the issue and with no legacy business to port over, there isn't anything on that side that would delay things beyond their planned timescale. Or maybe they couldnt book time with FNZ. Aviva's platform conversion to FNZ took longer than expected. Ascentric are about to move to FNZ and Old Mutual are moving to FNZ Q1/2 next year.

The FCA also recently completed a platform review and a pension review and had particular concerns over drawdown on DIY platforms. The outcomes of that may well have changed plans.

Or it can be a whole range of other things......

BLB53

Personally I would go with AJ Bell Youinvest for this year and put the money into Vanguard Lifestrategy. By next April it should be more clear where Vanguard Investor are up to with their SIPP launch.

zolablue25

p00hsticks wrote: »

Is your wife on track for a full state pension ?
She can check her personal forecast here ...
https://www.gov.uk/check-state-pension


If she still needs NI years going forwards then paying for those would probably be the first point of expenditure before investing in a personal pension

She is about 4 years short. We are not going to start paying extra yet as she is still about 15 years away from State Pension age and could well reach the required level through working during those years. If it becomes obvious that isn't going to happen then we will buy her 4 years.