HL or L&G for SIPP

sam94

I've read says that Hargreaves Lansdown is the best place for a SIPP and that passive tracker funds and bonds are the best (for age 55+) and that keeping costs down is critical.

So the 'advice' is to get Legal & General funds through HL. However this looks to me to be a waste of money:

 

• Legal & General International Index Trust: With HL 0.45%+0.08%=0.54% avg  whereas buying direct from L&G cost is: 0.25% service charge + 0.08% fund management charge = 0.33%

• Legal & General UK Index: With HL 0.45%+0.13%=0.62% avg whereas buying direct from L&G cost is: 0.25% service charge + 0.06% fund management charge = 0.31%

• Legal & General All Stocks Gilt Index Trust: With HL 0.45%+0.08%=0.54% avg whereas buying direct from L&G cost is: 0.25% service charge + 0.1% fund management charge = 0.35%

It looks like I’m paying up to double the costs that I need to. Am I missing something?

Also I read that L&G are bad because you can't do flexible draw down. Does that still apply via HL?

Any other considerations?

Albermarle

I've read says that Hargreaves Lansdown is the best place for a SIPP

HL have a wide range of investments, drawdown flexibility and good customer service and website. However with a platform charge of 0.45%, they are the most expensive of the mainstream SIPP providers. 0.25% is a a more typical cost ( less for large funds) although there can be extras.

I think L&G SIPP is only for accumulation and when you want to take the pension you have to move it .

Linton

Where does this "advice" that you have read come from?  Does the author have a vested interest? Is it applicable to your circumstances? Why L&G in particular?

In random order:

1) It would seem L&G dont do SIPPs, just Personal Pensions.  I would guess you are restricted to L&G funds if you have an L&G PP.  From https://www.legalandgeneral.com/retirement/pension-drawdown/ and https://www.legalandgeneral.com/landg-assets/personal/retirement/_resources/documents/your-retirement-income/key-features/q59826.pdf it would seem that L&G do offer drawdown. 
2) HL is arguably the best in terms of facilities, website, support, range of funds etc but is also the most expensive of the mainstream platforms. HL are likely to be free for some extra services whereas some other platforms may charge. Your choice. There are several other platforms that are perfectly adequate but cheaper.  For example I use AJBell which like L&G has a charge of 0.25% but is a SIPP with a very wide range of funds.  AJBell supports drawdown.
3) Drawdown is a function of the platform (eg HL), not the funds.  If you want drawdown you will need to pay for a platform that supports it.  You will be able to use drawdown with any fund supported by the platform which for mainstream SIPPs is in the thousands.
4) Keeping costs down is important, but not as important as choosing funds and their relative proportions appropriate to your circumstances.  If the pot > £50K-£100K you may wish to consider paying for advice as to how your money should be invested, how much you should be able to drawdown sustainably etc etc

EdSwippet

sam94 said:

I've read says that Hargreaves Lansdown is the best place for a SIPP ...

Not sure where you read that -- HL's own marketing puff, perhaps?! -- but there are certainly other contenders that will offer the same deal but at lower costs.

The best for you will depend on how much your SIPP will hold, what types of investments you will use, how often you will trade, and so on. If you can detail these, you'll get better answers here. For now though, omitting that information and comparing only HL with Legal & General, ignoring other providers, presents a false dichotomy.

Albermarle

 It would seem L&G dont do SIPPs, just Personal Pensions

They launched a SIPP a couple of years ago, with just 5 fund options. It seems now to have been renamed a personal pension, also with the same 5 fund options. I think drawdown is not possible with this pension, although L&G seems to offer a drawdown product you can transfer to.

L&G retail pension strategy seems a bit hard to follow generally , having sold most ( but not all) of their retail investment side to Fidelity.

Personally I would use one of the better known SIPP providers, who seem more fully committed to the market.

dunstonh

So the 'advice' is to get Legal & General funds through HL. However this looks to me to be a waste of money:

Who is giving this advice?   

HL are one of the more expensive platforms and L&G don't have the best trackers in all areas. 

Also I read that L&G are bad because you can't do flexible draw down. Does that still apply via HL?

Which flexible drawdown method are you looking to use?
Which L&G pension are you looking at?  (i didn't think they offered a SIPP and are only active in the workplace pension/occupational pension environment nowadays after selling their legacy pension book

Albermarle

Which L&G pension are you looking at?  (i didn't think they offered a SIPP and are only active in the workplace pension/occupational pension environment nowadays after selling their legacy pension book to reassure)

They launched a SIPP ( with only five fund options, so not really a SIPP at all) around the same time that they sold all their non pension retail investment business to Fidelity. It seems to have now been renamed a Personal Pension.

Personal Pension | Private Pension | Legal & General (legalandgeneral.com)

ian16527

https://forums.moneysavingexpert.com/discussion/6214798/legal-general-sipp-120-cashback-now-ended/p1