Vanguard finally launches SIPP

chockydavid1983

https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/personal-pension-account
I'll be moving mine over shortly

mcooke999

I've tried to transfer but I can't get past the first page, the 'Let's get started' button doesn't work for me. Has anyone else found this?

[Deleted User]

mcooke999 said:

I've tried to transfer but I can't get past the first page, the 'Let's get started' button doesn't work for me. Has anyone else found this?

In the other sub forum (Pensions) a few have already transferred this morning

AnotherJoe

Try a different browser.

talexuser

Is there no drawdown provision? They talk about selling up and buying an annuity when you need the money. So it is only worthwhile for the low charges while accruing and maybe the 25% tax free lump? Or you have to sell a little every month? I couldn't see any selling charges.

bowlhead99

talexuser said:

Is there no drawdown provision? They talk about selling up and buying an annuity when you need the money. So it is only worthwhile for the low charges while accruing and maybe the 25% tax free lump? Or you have to sell a little every month? I couldn't see any selling charges.

They don't have charges for buying or selling funds or ETFs, that's covered by the ongoing annual percentage charge.

They have said that what they're launching immediately is a SIPP to invest in, and the services for people wanting to do drawdown from the pension will follow.

This because it takes time to for them to build the whole new pension product and service and technology side of it, and they didn't want to launch the drawdown offering now with just a few weeks to go before the tax year end and have customers expect that they would definitely be able to contribute or transfer and then pull income out this tax year - a delay or teething problem with any part of the service could cause someone a real headache in terms of not getting enough income in this tax year for their planning objectives.

So they are launching with immediate effect a product that lets you accumulate funds for retirement, and the drawdown service will follow next tax year. If that side of the product isn't any good, it won't be difficult to transfer to a rival product. 

Right at the top of the page on the OP's link they say this is a product 'for retirement savers',

And for those who are ready to start using their retirement savings, we’ll be launching our range of flexible drawdown options later. If you want to be the first to hear about these, you can sign up for email alerts.

Personally I'm over a decade from being able to draw pension so have not looked in any detail at what those services cost in my SIPP. Inevitably in a decade or two from now the best product on the market for drawdown might not be the best one on the market today. So how Vanguard run their drawdown process or what they charge to arrange things, wouldn't be of any interest to me other than as a curiosity, even if I was considering moving to them to help build my assets.

talexuser

Thanks, it looks like I'll only save about £33 a year in charges compared to Cavendish, since can only put 3k6/year into the SIPP, and it is only a very small part of my total. So personally not worth giving up a full choice of funds at this time. For someone with a large pot the savings will obviously be very worthwhile if you are happy with trackers.

Loan_soldier

What happens to my pending tax relief payments with my current provider if I transfer my pension to Vanguard?

bowlhead99

If you transfer the pension in full and close your account, once the tax relief has been collected from HMRC and credited to you, they would be forwarded. Same with dividends receivable. 

If you only did a partial transfer and kept the old pension account open with some assets and/or cash in it, the tax relief money would presumably arrive in that old account as normal and not be forwarded.

TUVOK

Could any one confirm that I have my facts correct about my SIPP?
I have an existing SIPP with HL, it's composed of funds only.
I would like to open a new SIPP with Vanguard where I already have an account
Am I correct in believing that I can have two SIPP's with two different providers at the same time.
I would plan to not add to my HL SIPP, but fund my new SIPP with Vanguard, I then presume that the tax free payment would go to my Vanguard account in due time?
Hopefully I have my facts correct?
Many thanks for all replies.

newatc

Multiple SIpps are fine although I guess there could be extra complexity in some circumstances (going over limits for example).