How Much in a SIPP?

Mothman

Just wondered of those here who use SIPPs for drawdown, how many SIPPS do you use and what sort of figure do you feel comfortable holding in any one SIPP?
I plan to retire\semi –retire at the end of this year age 58, I currently have the following 4 pensions none of which offer drawdown:-

1. 1. Aviva PP £147K
2. 2. Fidelity SIPP (via Cavendish) £41K
3. 3. NEST £21K
4. 4. Prudential With Profits Pens £121K

My intention was to transfer the first 3 pensions into an iWeb SIPP and leave the Prudential Pension untouched until age 65 when I will transfer it to a provider other than iWeb. However this will still mean I have +£220k with iWeb. The alternative would be to split this into four different SIPP’s to get nearer the FSCS compensation limit but this would increase cost and complexity, something I was trying to avoid in retirement.

OldMusicGuy

I have a lot more than you in a single SIPP spread across three multi-asset funds and cash. The risks of either the SIPP provider or the fund providers suffering the kind of issues that would require FSCS compensation are minimal IMO and not worth worrying about. However, I know there are others on here that don't share my confidence (hi Alexland ).

If I were using niche providers and specialist funds I would be more circumspect.

Marcon

I think you're taking worrying to extremes! Getting four lots of charges for running 4 SIPPs would be a much riskier bet to me.

dunstonh

how many SIPPS do you use

About 5 at this time (including personal pensions). Although never more than 1 per person.

what sort of figure do you feel comfortable holding in any one SIPP?

No limit. And if I did have an extremely paranoid individual who failed to understand things, I would use a PPP rather than a SIPP and get the 100% protection.

The alternative would be to split this into four different SIPP’s to get nearer the FSCS compensation limit but this would increase cost and complexity, something I was trying to avoid in retirement.

What risks are you looking to mitigate by spreading the providers?
Would you use different funds in each SIPP or the same fund?

johnhemming

I have a single SIPP, but multiple ISAs (I am also 58). I have not worried about the issue of FSCS protection as the funds tend to be in nominee names, but I accept that there can be an issue as there was recently about administrator fees, but that was in the end resolved. I cannot remember the name of the company where the problem was, but it is not something to completely ignore as an issue.

dunstonh

but I accept that there can be an issue as there was recently about administrator fees

That issue involved a discretionary investment manager who used niche, high risk illiquid investments that could not be easily liquidated. If you stick to mainstream unit linked funds, then that would not be an issue.

If you go into high risk, non-mainstream, illiquid investments, then that sort of thing is always a risk. Indeed, if you look at all the fund failures they were all of that nature.

johnhemming

dunstonh wrote: »

If you go into high risk, non-mainstream, illiquid investments, then that sort of thing is always a risk. Indeed, if you look at all the fund failures they were all of that nature.

Thanks for that. I am a sort of exection only SIPP and ISA holder. Very few of my holdings are really illiquid, but if they are that is my decision and I understand the liquidity issue.

coyrls

I use a SIPP for drawdown. I have one SIPP. I feel comfortable holding all my pension in one SIPP and my holdings exceed your total. My ISA is on a different platform.

lisyloo

I have 2 sipps bit only beause my employer insists on using the second. I would have 1 otherwise.



I would not want to retire on the amounts you have as I don't think it's enough to live on. Are you planning to live off these amounts?

Mothman

Thanks for the replies. Pleased to hear that some are happy to keep a goodly sum in one SIPP as this would also be my preference, but as you say others may disagree.


I just now need to decide on the fund allocation, below is what I use in my Fidelity SIPP, undecided at the moment whether to go with this or keep it simple and use VLS60. Long term goal for my for pensions is for a 2.7%+ RPI inflation return. Drawdown will be one UPFLS payment per year and so I dont expect transaction costs to be a huge issue.


Equities
Vanguard FTSE Dev World excluding UK Index Acc - 34%
Vanguard global Small Cap Index Acc - 7%
LF Lindsell Train UK Equity Acc - 6%
JPM Emerging Markets B Acc - 6%
iShare Global Property Securities Equity Index - 4%
Diversifiers
Architas Diversified Real Assets Acc - 5%
Fixed Interest
Royal London Short Duration Gilts - 17%
Vanguard UK Government Bond Index Acc - 6%
Vanguard UK Inflation Linked Gilt Acc - 5%
L&G Global Inflation Linked Bond Index Acc - 10%

Trustnet only gives me performance figures for 3yrs but these would be 1yr 1.7% & 3yrs 34.2% (VLS60 = 1yr 1.5% & 3yrs 32.5%).


please feel free to critique

StellaN

Mothman wrote: »

Thanks for the replies. Pleased to hear that some are happy to keep a goodly sum in one SIPP as this would also be my preference, but as you say others may disagree.


I just now need to decide on the fund allocation, below is what I use in my Fidelity SIPP, undecided at the moment whether to go with this or keep it simple and use VLS60. Long term goal for my for pensions is for a 2.7%+ RPI inflation return. Drawdown will be one UPFLS payment per year and so I dont expect transaction costs to be a huge issue.


Equities
Vanguard FTSE Dev World excluding UK Index Acc - 34%
Vanguard global Small Cap Index Acc - 7%
LF Lindsell Train UK Equity Acc - 6%
JPM Emerging Markets B Acc - 6%
iShare Global Property Securities Equity Index - 4%
Diversifiers
Architas Diversified Real Assets Acc - 5%
Fixed Interest
Royal London Short Duration Gilts - 17%
Vanguard UK Government Bond Index Acc - 6%
Vanguard UK Inflation Linked Gilt Acc - 5%
L&G Global Inflation Linked Bond Index Acc - 10%

Trustnet only gives me performance figures for 3yrs but these would be 1yr 1.7% & 3yrs 34.2% (VLS60 = 1yr 1.5% & 3yrs 32.5%).


please feel free to critique

It seems a lot more effort will be required with this portfolio taking into account re-balancing and constantly assessing the individual funds holdings/volatility/performance etc. As you have already stated there is a marginal difference on the 1yr and 3yr performances, therefore if I was in your shoes I'd most probably go for VLS60 or alternatively as a cheaper option the HSBC Global Strategy Balanced fund.