Advice pls: opening SIPP on low, variable income and UC

turtlemoose

I'm new to sorting out pension things by myself as was employed for 14 years at the same place and just paid in to that and never gave it a second thought, so I really appreciate any help as I'm totally lost here. 
I'm now on a significantly lower income, supplemented by UC. I work two jobs, a 7.5hr and a zero hour - both are temp, both sometimes have more hours. I'd like to be paying something in to a pension, but there may be some months where I can't afford anything, or there might be some months where I get loads of hours and can put maybe £200 in.  Or both jobs might come to the end of their fixed terms and I can't find anything else. Or I might get lucky and get something else. So many unknowns so I really need flexibility as well as affordability.
a) is there such a thing as a low fee SIPP where I can pay in different amounts each month as I choose? 
b) for UC purposes, is the deduction for what is paid in to the SIPP taken from the assessment period in which I actually make the payment in to the SIPP, or the following one (ie in arrears)?
c) do UC get this information automatically (like they get wage data) or do you have to manually inform them each time?
d) I have c.£50k in my previous employer's pension. Do I leave that there? Or do I transfer it out in to a SIPP? It's with Hymans if that makes any difference.

I think that's everything for now,  TIA for the help. 

Albermarle

Answer to a) is yes there quite a few and they are easy to open on line .
For d) you need to give some more detail . Hymans is not a mainstream/well known provider Do you know if it was a final salary scheme ?or a DC scheme where there is a pot of money ( £50K) that is invested ? If it is the latter do you know what the money is actually invested in within the pension and any charges ?

NedS

turtlemoose said:

a) is there such a thing as a low fee SIPP where I can pay in different amounts each month as I choose? 
b) for UC purposes, is the deduction for what is paid in to the SIPP taken from the assessment period in which I actually make the payment in to the SIPP, or the following one (ie in arrears)?
c) do UC get this information automatically (like they get wage data) or do you have to manually inform them each time?
d) I have c.£50k in my previous employer's pension. Do I leave that there? Or do I transfer it out in to a SIPP? It's with 

I can answer (b) and (c) for you.

UC is calculated on your NET income, which is your GROSS income less any tax, NI, and pension contributions. So your UC for that month will be based on how much you've earned in that month, less any additional pension contributions you've made in that month. You will need to notify UC each month of any pension contributions you've made into a SIPP that aren't included in your PAYE payslip.

UC should deduct these additional SIPP pension contributions from your earnings, in the month in which they were made. You will be required to provide evidence of the pension contributions (e.g, a pension statement showing the payment) every month, assuming you make a contribution every month.

turtlemoose

Albermarle said:

Answer to a) is yes there quite a few and they are easy to open on line .
For d) you need to give some more detail . Hymans is not a mainstream/well known provider Do you know if it was a final salary scheme ?or a DC scheme where there is a pot of money ( £50K) that is invested ? If it is the latter do you know what the money is actually invested in within the pension and any charges ?

It is a DC scheme. I'm a bit ashamed to realise I never really looked in to it at all...oh dear. Some digging around my online account finds that it is all invested in "MS L&G Morgan Sindall Growth Fund", and the only thing I can find ref charges is in a document about changes to investment management charges from 2018, which says Morgan Sindall Growth Fund is 0.20%.  

Brynsam

Albermarle said:

Answer to a) is yes there quite a few and they are easy to open on line .
For d) you need to give some more detail . Hymans is not a mainstream/well known provider Do you know if it was a final salary scheme ?or a DC scheme where there is a pot of money ( £50K) that is invested ? If it is the latter do you know what the money is actually invested in within the pension and any charges ?

Hymans (Robertson) is a well known benefits consultancy, not a provider. They will be the administrators of the scheme.

Albermarle

Brynsam said:

Albermarle said:

Answer to a) is yes there quite a few and they are easy to open on line .
For d) you need to give some more detail . Hymans is not a mainstream/well known provider Do you know if it was a final salary scheme ?or a DC scheme where there is a pot of money ( £50K) that is invested ? If it is the latter do you know what the money is actually invested in within the pension and any charges ?

Hymans (Robertson) is a well known benefits consultancy, not a provider. They will be the administrators of the scheme.

Does that mean then that there will be a pension provider holding the fund. If so they will be charging to do that and the OP will need to find out what that charge is ( in addition to the fund charge ) to have the full picture ?

turtlemoose

Uhhh the penny is dropping here,thanks for the nudges in the right direction!  I've checked the website extensively - there is no information on charges. I called Hyman's but there is only a voicemail option for the team that deals with my old employer, so I've left a message. 

So...where I'm up to is the funds are invested with Legal & General, in a portfolio that's put together for my ex-employer, and this is administered/managed by Hymans. I'll come back as soon as I find out what ALL charges involved are.v

Albermarle

turtlemoose said:

Uhhh the penny is dropping here,thanks for the nudges in the right direction!  I've checked the website extensively - there is no information on charges. I called Hyman's but there is only a voicemail option for the team that deals with my old employer, so I've left a message. 

So...where I'm up to is the funds are invested with Legal & General, in a portfolio that's put together for my ex-employer, and this is administered/managed by Hymans. I'll come back as soon as I find out what ALL charges involved are.v

Good that you are making some progress.
Although of course you should know what charges you are paying and then you could think about whether it might be worth transferring or not . However keep in mind that investment performance is more important than charges so  you need to check how the investment has performed over the last few years as well before making any decisions.

barnstar2077

I have a SIPP with Vanguard.  I pay into one of their Lifestrategy funds, often different amounts.  Sometime I miss a month.  No problem.  

turtlemoose

I finally managed to get through to a person at the administrator. I can leave the funds there if I wish to, until my retirement date, and there are no management fees charged to me, but I can't add to it. On the 22nd Sept it was worth £50263, today's figure is £54099 - and obviously nothing has been paid in to that. I'm leaning towards leaving it where it is for now as that seems good to me but of course happy to be corrected!

That means I *do* need to open a SIPP for new contributions, so thanks for the advice and help everyone