Getting started with a SIPP

Albermarle

I'm also in the process of researching SIPP providers. Another alternative is AJ Bell - seems about the same price as Fidelity for your size of pot but with less of the complaints about the interface.

I also researched sipps recently . AJ Bell , like a few others has a standard 0.25% charge but all of these sipps have a range of other charges for other things, like drawdown for example . HL and Fidelity have almost no extra charges ( apart from trading ) so are similar in that respect , although Fidelity is cheaper but with a less slick website The OP has £500K so a fixed fee sipp like II would be cheaper. Of course all these charges can change in future .

Albermarle

BTW I also have DB plus DC. I've had a CETV for the DB and even though it's a lot of zeroes, I'm not tempted.

Same for me and was not tempted even though I was offered the IFA service for free ( obviously desperate !)

squirrelpie

If you're a spreadsheet person, then you'll probably love Snowman's spreadsheet http://https://forums.moneysavingexpert.com/discussion/5583030/coolly-comparing-investment-platform-charges-snowmans-spreadsheet which compares costs on different platforms and takes things like fee limits into account.

Thrugelmir

Johnny_P wrote: »

I am a spreadsheet person

Run as many what if scenario's as you wish. Reality is likely to be very different. Wouldn't take much to blow your 35 year forecast totally off course. If investing in the stock market were that easy. Previous generations would all be millionaires by now.

G4OJR

Be sure that you want to transfer out of the db scheme. The transfer valuation I received wasn't very attractive.

shinytop

The OP has £500K so a fixed fee sipp like II would be cheaper. Of course all these charges can change in future .

It would for me too. I don't want a really poor service though; I'd rather pay a bit more. The problem is there don't seem to be many who can comment about real experience of the cheap providers in drawdown.
AJ Bell's platform fee drops to 0.1% from £250-500k so a bit less than 0.25%. It is another £100 pa for drawdown though.

Thrugelmir

shinytop wrote: »

It would for me too. I don't want a really poor service though; I'd rather pay a bit more. The problem is there don't seem to be many who can comment about real experience of the cheap providers in drawdown.
AJ Bell's platform fee drops to 0.1% from £250-500k so a bit less than 0.25%. It is another £100 pa for drawdown though.

AJ Bell offer paltry to zero interest on cash balances. That's where they are generating a sizable amount of their revenue from. Customers foot the bill one way or the other.

Johnny_P

thanks everyone for food for thought I am formulating a plan B (which is actually close to my initial plan). it raises some other questions which I think I will post separately as they are moving off into another area.

Malthusian

Johnny_P wrote: »

Appreciating that the answer will be 'it depends on what they say', but I am wondering what happened to people who were 52 when they changed the age from 50 to 55?

They could move their pension into income drawdown before 6 April 2010 and take maximum tax free cash. They then retained the ability to draw income from the fund, even while they were under 55. Within the capped drawdown limits that applied in the pre-pension-freedoms era.

I think they potentially had to wait to 55 if they wanted to buy an annuity or transfer to another drawdown provider, but I can't remember. It hardly mattered anyway.

The likelihood is that the same will apply when the new rules come into force in 2028 - if you don't want to be locked out when the minimum age goes up, you can go into income drawdown beforehand.

I can't see the Government withdrawing the ability to draw from pensions that have already been put into income drawdown. It would be inconsistent and inequitable because as you touch on with reference to DB pensions, those who bought an annuity certainly aren't going to have their annuity payments stopped until they reach 57, so why should those who opted for income drawdown be denied income?

There is also talk of a taper applying but it really isn't necessary - there was a 5-year cliff edge in 2010 and almost no-one protested because the option to take income drawdown, and the fact that anyone planning to retire before 55 had plenty of time to build a retirement fund outside their pension, meant there was almost no protest.