The £2880/3600 SIPP for a retired person on low income, ideally very low or nil fee?

swindiff

I do this for my mum.  As other have said cash SIPP with HL is totally free.  Put in the £2880, wait approx 6 weeks for the £720 tax relief and then draw all £3600 free from any income tax providing you are within your annual allowance.  You max find that it is initially taxed and you need to contact HMRC to claim it back depending on when you withdraw and if it is all done at once rather than taken as a monthly income.

trickydicky14

Audaxer said:

drumtochty said:

Audaxter. I think you are out of date the £1,000 minimum in the account no longer applies.

It is up to the original poster to check that.

I had heard there was no exit fee now, but I had thought you still had to leave £1,000 in to keep it open. Can you now take the balance down to Nil and they will leave the SIPP open? 

I have just had this issue this week,
There is no exit fee to pay but if you run your cash down below 1k the account will be closed.
I attempted to just leave £100 but got an on screen message warning me the account would be closed.

tigerspill

drphila said:

You're probably too late for this tax year.

For next tax year, pay in 2880 with HL before 5/1/21

Get tax relief by 21/2/21.

ASAP after 21/2/21 set up regular £25 monthly payment starting 7/4/21 (the 7th is the day that HL takes payment)

Withdraw 3599 (technically HL can close your account if the balance drops below 1000 - setting up a regular payment prevents that)

Cancel regular payment ASAP after 7/12/21

Pay in 2880 minus sum of regular payments before 5/1/22.

Repeat above.

NO FEES

When I opened my HL SIPP last week, it took maybe 10 minutes to open and fund.  So not too late from that perspective.

drphila

Mnd said:

Why is it too late for this tax year. It won't take a month to open will it? The tax relief might be after April 6th but it will still be there.

Sorry you're right. I was thinking of my own situation where I've got a lot of personal allowance to use up this year.

tigerspill

Thrugelmir said:

drphila said:

You're probably too late for this tax year.

For next tax year, pay in 2880 with HL before 5/1/21

Get tax relief by 21/2/21.

ASAP after 21/2/21 set up regular £25 monthly payment starting 7/4/21 (the 7th is the day that HL takes payment)

Withdraw 3599 (technically HL can close your account if the balance drops below 1000 - setting up a regular payment prevents that)

Cancel regular payment ASAP after 7/12/21

Pay in 2880 minus sum of regular payments before 5/1/22.

Repeat above.

NO FEES

How long before HL bolt the door if there's a noticable increase in such activity. 

Surely they still make money with each SIPP from the low interest rate they offer?  If so, I suspect they will just rub their hands at more money.  I cant imagine they offer a product variant where they dont have a good RoI.

Thrugelmir

tigerspill said:

Thrugelmir said:

drphila said:

You're probably too late for this tax year.

For next tax year, pay in 2880 with HL before 5/1/21

Get tax relief by 21/2/21.

ASAP after 21/2/21 set up regular £25 monthly payment starting 7/4/21 (the 7th is the day that HL takes payment)

Withdraw 3599 (technically HL can close your account if the balance drops below 1000 - setting up a regular payment prevents that)

Cancel regular payment ASAP after 7/12/21

Pay in 2880 minus sum of regular payments before 5/1/22.

Repeat above.

NO FEES

How long before HL bolt the door if there's a noticable increase in such activity. 

Surely they still make money with each SIPP from the low interest rate they offer?  If so, I suspect they will just rub their hands at more money.  I cant imagine they offer a product variant where they dont have a good RoI.

Where's HL's profit generated from? If there's no fees attached to the account. 
Unless it's a marketing strategy, i.e. loss leader. Woodford damage repair. 

Dazed_and_C0nfused

They have £3,600 on which to earn interest themselves and pass 0.10% to you.

For one customer HL's own admin might not make it profitable but presumably economies of scale change that.

Thrugelmir

Overnight commercial deposit rates are 0.2%. 

tigerspill

Thrugelmir said:

tigerspill said:

Thrugelmir said:

drphila said:

You're probably too late for this tax year.

For next tax year, pay in 2880 with HL before 5/1/21

Get tax relief by 21/2/21.

ASAP after 21/2/21 set up regular £25 monthly payment starting 7/4/21 (the 7th is the day that HL takes payment)

Withdraw 3599 (technically HL can close your account if the balance drops below 1000 - setting up a regular payment prevents that)

Cancel regular payment ASAP after 7/12/21

Pay in 2880 minus sum of regular payments before 5/1/22.

Repeat above.

NO FEES

How long before HL bolt the door if there's a noticable increase in such activity. 

Surely they still make money with each SIPP from the low interest rate they offer?  If so, I suspect they will just rub their hands at more money.  I cant imagine they offer a product variant where they dont have a good RoI.

Where's HL's profit generated from? If there's no fees attached to the account. 
Unless it's a marketing strategy, i.e. loss leader. Woodford damage repair. 

I dont know HL's business model nor how they make money from this product - but if they cant make money from it directly or indirectly then it would be withdrawn.  They must have a business reason.