Consolodating SIPPS or not

segovia

I have two SIPPS, AJ Bell and Interactive Investor. 

I am paying £10.00 custody charge to AJ Bell and a flat fee of £19.99 a month to II, I can't remember how I ended up with two SIPPS or the rationale behind it; however, common sense now telling me I should consolidate to reduce fees. Before I do, are there any benefits in having two SIPPS, specifically as I may go into drawdown within the next 2 - 3 years. 

J  

MX5huggy

Is either of them under £10k and therefore small pots? 

segovia

No, they are higher than 10K

Albermarle

The flat fee at II makes it expensive for amounts say approx under £100K. Above that it will probably be more competitive than a provider that charges a % of the amount held with them , like AJ Bell.
Admin wise probably easier just to have one pension you drawdown from.

segovia

I am sure A J Bell is also a flat fee now, I thought they originally worked on a % custodian charge, but it seems to be static at £10.00 PM 

segovia

https://www.youinvest.co.uk/charges-and-rates

£219.50 based on value and trades, when I looked at my charges on my account they seem to be static, £10.00PM

segovia

I contacted AJ Bell and if I consolidated my fees would be as below, so there is a small saving in merging. However, back to my original question, fees aside, is there any benefit of having two SIPPS? 

The charges would be as follows:

For your SIPP account, – £120 per year.

For your ISA account—£42 per year.

If you have any further queries, please feel free to contact us.

MallyGirl

There might be if you want to hold different funds in the crystallised and uncrystallised buckets and your provider doesn't support that?

Albermarle

segovia said:

I contacted AJ Bell and if I consolidated my fees would be as below, so there is a small saving in merging. However, back to my original question, fees aside, is there any benefit of having two SIPPS? 

The charges would be as follows:

For your SIPP account, – £120 per year.

For your ISA account—£42 per year.

If you have any further queries, please feel free to contact us.

I think the 'charging mystery' is solved. AJ Bell do charge 0.25% , but have a £120 max charge in their SIPP, if you only hold shares/ETF's/Investment Trusts, as opposed to OEIC funds. Does that make sense?

Disadvantages of having two SIPP's are. Extra admin, remembering log on passwords, potentially increased fees, can be more complicated to analyse your whole portfolio. Having to navigate two different systems, easier to get familiar with one. In drawdown, potential issues with HMRC tax codes, if you withdraw from both at the same time.

Advantages - Still have access to one, if the other has a major IT meltdown. Ability to compare how good each platform is. For people with larger pots some peace of mind that not all eggs in one basket. You could drawdown from one and not the other( maybe keep it as a potential inheritance)  which might suit managing the investments to your objectives easier.

No doubt more pluses and minuses.