Sipp for wife and myself - double charges?

Onshore

Looking to create Sipps for my wife and myself - transferring money from existing pensions and regular future investments.
I was keen to have a Sipp each as at retirement we will both be able to take out up to the tax threshold every year - effectively doubling our tax free income.
However, we will have to pay double charges - percentage of fund, or fixed fee dependent on who we go with - plus double share dealing costs.
Is it the best way to have one each? Or are there other ways?
Any thoughts?
Thanks you!!!

Dazed_and_confused

I was keen to have a Sipp each as at retirement we will both be able to take out up to the tax threshold every year - effectively doubling our tax free income.

Won't you each have State Pension and some other company/occupational pension income?

cloud_dog

Onshore wrote: »

Looking to create Sipps for my wife and myself - transferring money from existing pensions and regular future investments.
I was keen to have a Sipp each as at retirement we will both be able to take out up to the tax threshold every year - effectively doubling our tax free income.
However, we will have to pay double charges - percentage of fund, or fixed fee dependent on who we go with - plus double share dealing costs.
Is it the best way to have one each? Or are there other ways?
Any thoughts?
Thanks you!!!

Well, no if you go for a percentage based provider, they generally do not charge for investments in to OIECs so that would not be double charging as it is percentage based, i.e. X% of all of it or (X% of half of it) x 2.

Yes, if you go for a fixed price provider then yes you would be double charged but, people tend to go fixed price as it is cheaper than percentage based providers.

So to answer your question...No and Yes.

Onshore

Thanks Cloud Dog, Its often a yes and no answer isn't it! Just as I expected so thanks for confirming what I was already thinking re the fixed price or percentage based providers. I will do the sums and work out whats best for the values we have.
Gotta watch those charges...

cloud_dog

Do a search on this forum for Snowmans excellent Comparing Platform Charges spreadsheet. If I find it later I will post the link.

Found it here

MK62

If you use a percentage fee platform, then it often costs no more to have two accounts than one..... (ie £50000x0.35%x1=£175...and £25000x0.35%x2=£175)....and at lower values, percentage fee platforms are usually cheaper.

However, you do have to work it out based on what you'll be transferring and how quickly that's going to increase through contributions and growth (hopefully).
If you both have a pension to transfer then you must have two accounts anyway, as you can't routinely transfer a pension from one person to another.

As to sharedealing costs, it depends what you are investing into......many platforms have "free" fund dealing (OK it's built into the platform fee really), but if not, or you want individual shares, Investment Trusts or ETFs, then you can often avoid doubling transaction costs across two accounts by being selective about what you hold in each account, and avoiding duplication where possible.

Albermarle

You can have a look at this :
http://www.comparefundplatforms.com/
Also worth noting most charge extra when you drawdown , but not all .
Some % based ones cap the fees for shares/IT's/ETFs at a low level so if you are in these investments , rather than funds, they can work out cheaper than a fixed fee SIPP.
There are usually a couple of cashback offers for pension transfers .

Onshore

Yes I had stumbled across that comparison chart from Snowie before - really helpful. Like all this stuff, seems to be exactly right answer, as so many variables, but certainly this narrows things down a lot.

Onshore

MK62 wrote: »

If you use a percentage fee platform, then it often costs no more to have two accounts than one..... (ie £50000x0.35%x1=£175...and £25000x0.35%x2=£175)....and at lower values, percentage fee platforms are usually cheaper.

However, you do have to work it out based on what you'll be transferring and how quickly that's going to increase through contributions and growth (hopefully).
If you both have a pension to transfer then you must have two accounts anyway, as you can't routinely transfer a pension from one person to another.

As to sharedealing costs, it depends what you are investing into......many platforms have "free" fund dealing (OK it's built into the platform fee really), but if not, or you want individual shares, Investment Trusts or ETFs, then you can often avoid doubling transaction costs across two accounts by being selective about what you hold in each account, and avoiding duplication where possible.

Yes, this is just as I was thinking so thanks for confirming my thoughts! I have considered the likely pension amounts in the future, for fixed and percentage options - I think percentage based is the way to go for now... Thanks for your input!