Can I take out part of my company private pension to SIPP & recommendation for SIPP platform

starkiwi26

Dear fellow members,
Hope all are doing well and healthy in Covid climate.

I have salary sacrifice for my pension (Legal & General) all these years. But I notice the grow is slow compared to my ISA investment. The fund choice is very limited at Legal & General pension.
Therefore I would like to take out 90% of my pension (Legal & General) to SIPP and invest myself. The Legal & General private pension will continue because my salary sacrifice will still pay in Legal & General pension.

Question 1: I am checking with Legal & General if they allow me to take out 90% and what is the take out charges. Please comment if you know.

Recommendation for SIPP platform
Following MSE SIPP page (https://www.moneysavingexpert.com/savings/cheap-sipps/), For >£50k SIPP investment, MSE recommended

Interactive Investor
Administration fee: £10/mth (free for the first six months)
Fee to trade: £9.99/mth (Investor plan) 

 

This brings Interactive Investor SIPP total monthly cost = £20/month, equivalent to £240/year. (first transaction/month is free, £7.99 for subsequence transaction) *free 6 months SIPP fee is not considered because it is one off and SIPP typically is a long term investment.

In comparison, iWeb SIPP looks more promising - £45/quarter, equivalent to £180/year, though £5 per transaction.

I am not from iWeb, but I am Martin's loyal follower. As I am planning to move pension to a SIPP, I investigated this in detail.

Question 2: Please let me know what you think, or if I made the mistake.
Question 3: Any recommendation?

Thank you, stay safe
:: BEER ::

Albermarle

Platform choice is a bit horses for courses and here is a comparison table 
https://monevator.com/compare-uk-cheapest-online-brokers/
However keep in mind that platform fees are small beer compared to how your actual investments perform . 

dunstonh

Before you pick a provider or pension type, it would be better to decide how you want to invest and which investments you are going to use.    Then you pick the pension type and provider/platform do to that.

 But I notice the grow is slow compared to my ISA investment. 

On most occasions that is down to different risk levels.   Does L&G offer a risk level investment that matches you?

starkiwi26

dunstonh said:

Before you pick a provider or pension type, it would be better to decide how you want to invest and which investments you are going to use.    Then you pick the pension type and provider/platform do to that.

 But I notice the grow is slow compared to my ISA investment. 

On most occasions that is down to different risk levels.   Does L&G offer a risk level investment that matches you?

L&G has quite limited number of funds to choose from. Considering I am young (37 years old), I am ok with higher risk, probably low cost index funds or some stock & shares.

Marcon

starkiwi26 said:

Question 1: I am checking with Legal & General if they allow me to take out 90% and what is the take out charges. Please comment if you know.

:: BEER ::

What was the answer when you investigated this in 2018: https://forums.moneysavingexpert.com/discussion/5808217/can-i-move-some-of-current-employer-pension-pot#latest

Unlikely to have changed!

TBC15

Fidelity are extremely cheap for a SIPP if you intend to only hold exchange traded investments such as shares or Investment trusts. £45 PA and £1.50 per regular trade.

dunstonh

L&G has quite limited number of funds to choose from. Considering I am young (37 years old), I am ok with higher risk, probably low cost index funds or some stock & shares.

Yes, it is likely to have limited funds.  However, the funds they typically have are usually multi-asset funds with underlying passives.  or a limited range of passive funds  The very thing you are looking to use.

Looking at your 2018 thread, it appears your pension does have index trackers and cheaper than your ISA despite you thinking they cost more.

Going with direct stocks and shares is unusual and takes a lot of knowledge and reading.   Are you up for that?

Looking at your 2018 thread, you appear confused and three years later you haven't done anything.  So, perhaps you are not up for that.