SIPP pension options

reggie

I have recently started a new part-time job with earnings of about £14k. I opted out of the workplace pension as I'm the only employee and the fund set up was quite costly for the employer to run. One alternative would be to look at NEST which wouldn't cost them anything to run, they are happy to pay £ into either this or a SIPP as part of salary sacrifice - with impending pay rise allowing for this. I am very close to retirement so likely this will only be for a few years but with tax relief it seems like a good option (I also have a teachers' pension, albeit a small one). So, any advice or pointers as to where to turn for SIPP that is managed and is low risk for what will amount to a small pot? I do have some accounts with Hargreaves Lansdown but their fees are not cheap, but then I'm not sure how much difference fees would make with such a small pot.

Albermarle

With salary sacrifice , the pension contribution only comes from the employer ( a mixture of their contribution and the salary you have sacrificed) So no further tax relief should be added by the pension provider .
So as far as I know the employer would have to set it up, not you , so you are maybe back at square one.
Even if it was not salary sacrifice , there would still be some employer contributions .

 So, any advice or pointers as to where to turn for SIPP that is managed and is low risk for what will amount to a small pot? 
A SIPP or any pension is just the part that manages the admin of the pension , tax , transferring money , buying investment funds etc . Your money is actually in investment funds within the pension. The SIPP/pension does not manage the investments.
What you mean is that you want a pension that offers simple managed funds within the pension for you to invest in .

I would wait for other comments but maybe Nest will be the best bet , or something similar like Peoples pension , that your employer can set up easily and with a simple choice of funds.

Marcon

Albermarle said:

With salary sacrifice , the pension contribution only comes from the employer ( a mixture of their contribution and the salary you have sacrificed) So no further tax relief should be added by the pension provider .
So as far as I know the employer would have to set it up, not you , so you are maybe back at square one.
Even if it was not salary sacrifice , there would still be some employer contributions .

The employer must have a scheme which satisfies auto-enrolment requirements. If the employer nominates NEST as their auto-enrolment scheme, OP could opt out of membership of that and the employer could then pay to a SIPP set up by OP.

reggie

Marcon said:

Albermarle said:

With salary sacrifice , the pension contribution only comes from the employer ( a mixture of their contribution and the salary you have sacrificed) So no further tax relief should be added by the pension provider .
So as far as I know the employer would have to set it up, not you , so you are maybe back at square one.
Even if it was not salary sacrifice , there would still be some employer contributions .

The employer must have a scheme which satisfies auto-enrolment requirements. If the employer nominates NEST as their auto-enrolment scheme, OP could opt out of membership of that and the employer could then pay to a SIPP set up by OP.

That's what I understood to be the case. I could set up and get employer to fill in direct debit form from SIPP provider and she would then let accountant who also does payroll know so can put through payroll. It's just finding a suitable company where fees won't eat everything up; although the reduction in tax payments in salary and also any contributions I make getting tax relief back should offset those?

Albermarle

t's just finding a suitable company where fees won't eat everything up; 

In general the pensions market has got more competitive over the years. You have to keep an eye on the fees but they are unlikely to eat up your pension.

For example using a mainstream SIPP provider with a standard multi asset fund would cost between 0.3% and 0.7% of the value of the fund .