SIPP Provider / Platfoms

segovia

Probably a little earlier than expected but I am now considering a transfer from my PPP into a SIPP, or at least starting off with a regular monthly contribution instead of paying into my PPP.

I've spent an hour on the Motivator site and I am still none the wiser.

Providers that seem to come up frequently are AJ Bell, II, and iWeb

Assuming that I will transfer one pot of £300,000.00 and continue to pay £750.00 a month and adopt a passive strategy, are there any recommendations?
J

cloud_dog

segovia wrote: »

Probably a little earlier than expected but I am now considering a transfer from my PPP into a SIPP, or at least starting off with a regular monthly contribution instead of paying into my PPP.

I've spent an hour on the Motivator site and I am still none the wiser.

Providers that seem to come up frequently are AJ Bell, II, and iWeb

Assuming that I will transfer one pot of £300,000.00 and continue to pay £750.00 a month and adopt a passive strategy, are there any recommendations?
J

Have a play with SnowMan's excellent platform costs spreadsheet, and see what works best for yourself.

Albermarle

It would probably be useful if you could give an explanation for the reasons for moving from a PPP to a SIPP, as that might give a better idea as to which would be the best one.
Also I am interested personally becasue when I looked at doing somehing similar , I decided in the end to stay with PPP's because I could not find any big advantage in changing. Although it seems to depend on if the PPP is an old one , maybe offering limited functionality and the charges ( for me the PPP worked out cheaper due to a previous employer negotiating low charges )

segovia

Albermarle wrote: »

It would probably be useful if you could give an explanation for the reasons for moving from a PPP to a SIPP, as that might give a better idea as to which would be the best one.
Also I am interested personally becasue when I looked at doing somehing similar , I decided in the end to stay with PPP's because I could not find any big advantage in changing. Although it seems to depend on if the PPP is an old one , maybe offering limited functionality and the charges ( for me the PPP worked out cheaper due to a previous employer negotiating low charges )

One of my PPP's does not have any drawdown capability. The move to a SIPP was in preparation for when I need to enter into a drawdown scenario. In my current pension charges are the difference between the buy and sell price of the fund, currently 5%. So for every £750.00, I pay in £37.5 goes into charges. The longer it is in the fund the charges level out. However, as I plan to get into drawdown in the next 4 years my objective was also to try and reduce the charges and my thinking a SIPP would be a better option.

dunstonh

In my current pension charges are the difference between the buy and sell price of the fund, currently 5%.

Are you sure that is still the case? Many of the pension providers that had bid/offer spreads in the 80s and 90s (they were gone by around 1998) neutralised them later in the pension term by having an increased allocation or buy only buying units in the clean share class or when rule RU64 came in during 2001, they equalised the charges with stakeholder. There are still some that have these spreads but they are not common. Although any pension that old is probably a decade or two overdue a review to consider moving.

segovia

dunstonh wrote: »

Are you sure that is still the case? Many of the pension providers that had bid/offer spreads in the 80s and 90s (they were gone by around 1998) neutralised them later in the pension term by having an increased allocation or buy only buying units in the clean share class or when rule RU64 came in during 2001, they equalised the charges with stakeholder. There are still some that have these spreads but they are not common. Although any pension that old is probably a decade or two overdue a review to consider moving.

Yes, it has a spread it is with Countrywide Assured previously Save and Prosper. "Managed Pension Fund". I'll also correct my previous statement, there is a 1.4% Annual Charge according to the Trustnet factsheet. On checking my policy there is a loyalty bonus which I expect will offset the annual charge. But considering the spread and the annual charge worst case 1.4% I am sure I can do better in respect of charges in a SIPP.

dunstonh

I'll also correct my previous statement, there is a 1.4% Annual Charge according to the Trustnet factsheet.

Do not assume trustnet is correct. That is a default charge. However, it may not reflect the actual pension charges. This goes for all pension funds. You need to ask the pension provider what the charges are. A bid/offer spread on the fund is cancelled out by an increased allocation on the pension. Trustnet wont show the increased allocation. Trustnet will default cost. You may not be on default cost.

Older plans are often rubbish by todays standards and easily improved upon. But I would estimate around 1 in 5 old plans are better.

segovia

dunstonh wrote: »

Do not assume trustnet is correct. That is a default charge. However, it may not reflect the actual pension charges. This goes for all pension funds. You need to ask the pension provider what the charges are. A bid/offer spread on the fund is cancelled out by an increased allocation on the pension. Trustnet wont show the increased allocation. Trustnet will default cost. You may not be on default cost.

Older plans are often rubbish by todays standards and easily improved upon. But I would estimate around 1 in 5 old plans are better.

Thanks, I intend to check tomorrow and I guessed that Trustnet can't be trusted, no pun intended!