SIPP v workplace pension

qwer11

I wonder if there is any advantage of using SIPP apart from giving a bigger choice of funds?
I have a workplace pension with Zurich and the fees for passive funds can be as little as 0.08%. I want to contribute more towards my pension and I am not sure if it is worth opening a SIPP or just increase my contribution to Zurich?

MK62

qwer11 wrote: »

I wonder if there is any advantage of using SIPP apart from giving a bigger choice of funds?
I have a workplace pension with Zurich and the fees for passive funds can be as little as 0.08%. I want to contribute more towards my pension and I am not sure if it is worth opening a SIPP or just increase my contribution to Zurich?

If your workplace pension gives you access to a reasonable choice of funds so that you can construct a portfolio to meet your goals, then, as I think you already realise, there would seem little point in opening a SIPP.


If you can salary sacrifice into your workplace pension, then even better....

Albermarle

I did the same exercise recently and compared one existing and one older workplace DC pension with SIPP alternatives .
My current employers pension ( Zurich now Scottish Widows ) had an average total cost of 0.6% for both the platform charge and the funds charge. ( even when not using passive index trackers ) as the employer had negotiated a good discount on normal charges . Another older one with Standard Life was the same , with a 0.55% discount on the standard charge . Depending on the SIPP and the charging structure /size of funds , most worked out more expensive . Only the flat fee ones worked out very marginally cheaper.
One issue to be aware of is that some older workplace pensions do not offer a drawdown option when you come to take the money . The two mentioned above do , so no reason for me to move to a SIPP , as only advantage would be a wider range of funds , which I have no need for.