Best SIPP provider?

Savingforahouse123

Hi I’m 28. My employer doesn’t offer salary sacrifice and my workplace pension isn’t invested in the best of places. 

Invested in B&CE GI (up to 100% shares). Their feee are:

Annual charge

An annual charge of £2.50 deducted during the scheme year.*

Management charge

A management charge of 0.5% of the value of your pension pot each year.

Rebate

A rebate on some of your management charge for savings over £3k.

I therefore want to invest in a SIPP as I think it’ll be lower fees and more choice of funds. I know I want to invest in the VG Global All Cap index fund so would a Vanguard SIPP be best or is there other options for super low fees? Thanks

L9XSS

I’m with Vanguard and have been very happy with there customer service, there charges and ease of use of the website. I’d also recommend Fidelity and HL.

Albermarle

Savingforahouse123 said:

Hi I’m 28. My employer doesn’t offer salary sacrifice and my workplace pension isn’t invested in the best of places. 

Invested in B&CE GI (up to 100% shares). Their feee are:

Annual charge

An annual charge of £2.50 deducted during the scheme year.*

Management charge

A management charge of 0.5% of the value of your pension pot each year.

Rebate

A rebate on some of your management charge for savings over £3k.

I therefore want to invest in a SIPP as I think it’ll be lower fees and more choice of funds. I know I want to invest in the VG Global All Cap index fund so would a Vanguard SIPP be best or is there other options for super low fees? Thanks

First thing to check is that your employer is willing to pay their contribution into an alternative pension. The majority are not willing, so you have to stay with the current one. You may be able to transfer out at intervals ( again you need to check). Of course if you wanted to make extra contributions, this could be via the workplace pension or a new one you set up. 
Your pension fees are already pretty low, especially if you have a reasonable size fund to get the discounts.
You could maybe get lower but unless you have a very large pot the differences are going to be minor. In fact with many SIPPs you will pay more.
Currently you are probably paying 0.5% to 0.2% ( depending on the size of your funds) 
The biggest SIPP provider charges 0.45% just for the platform fee so + investment fund costs.
Vanguard would cost you 0.37% for a Global all cap fund.
The performance of this fund and the one you now have is very similar over 3 and 5 years.

So overall not sure there is much mileage in changing.

Gary1984

As above, if you would no longer benefit from employer contributions then moving would almost certainly cost you a lot of money.

You could try asking the HR department if they have considered salary sacrifice and highlight the employer national insurance savings that they'd make.

handful

Depending on how much you are investing in VG it can be cheaper doing it through II (Interactive Investor). I am with them and I'm impressed, the platform is excellent once you get used to it. I can't remember where the line is drawn but it's somewhere around £80k for it to be cheaper due to fixed platform fee with II.

Savingforahouse123

Albermarle said:

Savingforahouse123 said:

Hi I’m 28. My employer doesn’t offer salary sacrifice and my workplace pension isn’t invested in the best of places. 

Invested in B&CE GI (up to 100% shares). Their feee are:

Annual charge

An annual charge of £2.50 deducted during the scheme year.*

Management charge

A management charge of 0.5% of the value of your pension pot each year.

Rebate

A rebate on some of your management charge for savings over £3k.

I therefore want to invest in a SIPP as I think it’ll be lower fees and more choice of funds. I know I want to invest in the VG Global All Cap index fund so would a Vanguard SIPP be best or is there other options for super low fees? Thanks

First thing to check is that your employer is willing to pay their contribution into an alternative pension. The majority are not willing, so you have to stay with the current one. You may be able to transfer out at intervals ( again you need to check). Of course if you wanted to make extra contributions, this could be via the workplace pension or a new one you set up. 
Your pension fees are already pretty low, especially if you have a reasonable size fund to get the discounts.
You could maybe get lower but unless you have a very large pot the differences are going to be minor. In fact with many SIPPs you will pay more.
Currently you are probably paying 0.5% to 0.2% ( depending on the size of your funds) 
The biggest SIPP provider charges 0.45% just for the platform fee so + investment fund costs.
Vanguard would cost you 0.37% for a Global all cap fund.
The performance of this fund and the one you now have is very similar over 3 and 5 years.

So overall not sure there is much mileage in changing.

Thanks. Hard getting my head around this.

When you say "You may be able to transfer out at intervals ( again you need to check)" - Would this be something I check with my pension provider or my employer?

I'm struggling to understand this. Say I have £5000 in my workplace pension. If I set up a SIPP, can I move that £5k over then moving forwards will:

• My pension from work get paid into my existing pension then I move it into my SIPP?

• Or will it just get paid into my workplace pension and I can't move it, then with money from my bank savings I can pay that into my SIPP separately?

Also, when you say "Currently you are probably paying 0.5% to 0.2% ( depending on the size of your funds)", I have £1.9k in this particular workplace pension so I presume that'll be 0.2%?

michaels

Savingforahouse123 said:

Albermarle said:

Savingforahouse123 said:

Hi I’m 28. My employer doesn’t offer salary sacrifice and my workplace pension isn’t invested in the best of places. 

Invested in B&CE GI (up to 100% shares). Their feee are:

Annual charge

An annual charge of £2.50 deducted during the scheme year.*

Management charge

A management charge of 0.5% of the value of your pension pot each year.

Rebate

A rebate on some of your management charge for savings over £3k.

I therefore want to invest in a SIPP as I think it’ll be lower fees and more choice of funds. I know I want to invest in the VG Global All Cap index fund so would a Vanguard SIPP be best or is there other options for super low fees? Thanks

First thing to check is that your employer is willing to pay their contribution into an alternative pension. The majority are not willing, so you have to stay with the current one. You may be able to transfer out at intervals ( again you need to check). Of course if you wanted to make extra contributions, this could be via the workplace pension or a new one you set up. 
Your pension fees are already pretty low, especially if you have a reasonable size fund to get the discounts.
You could maybe get lower but unless you have a very large pot the differences are going to be minor. In fact with many SIPPs you will pay more.
Currently you are probably paying 0.5% to 0.2% ( depending on the size of your funds) 
The biggest SIPP provider charges 0.45% just for the platform fee so + investment fund costs.
Vanguard would cost you 0.37% for a Global all cap fund.
The performance of this fund and the one you now have is very similar over 3 and 5 years.

So overall not sure there is much mileage in changing.

Thanks. Hard getting my head around this.

When you say "You may be able to transfer out at intervals ( again you need to check)" - Would this be something I check with my pension provider or my employer?

I'm struggling to understand this. Say I have £5000 in my workplace pension. If I set up a SIPP, can I move that £5k over then moving forwards will:

• My pension from work get paid into my existing pension then I move it into my SIPP?

• Or will it just get paid into my workplace pension and I can't move it, then with money from my bank savings I can pay that into my SIPP separately?

Also, when you say "Currently you are probably paying 0.5% to 0.2% ( depending on the size of your funds)", I have £1.9k in this particular workplace pension so I presume that'll be 0.2%?

Generally the smaller the pot the higher the % charge so it is likely on a small pot you are paying the 0.5%

MallyGirl

Savingforahouse123 said:

Thanks. Hard getting my head around this.

When you say "You may be able to transfer out at intervals ( again you need to check)" - Would this be something I check with my pension provider or my employer?

I'm struggling to understand this. Say I have £5000 in my workplace pension. If I set up a SIPP, can I move that £5k over then moving forwards will:

• My pension from work get paid into my existing pension then I move it into my SIPP? [not all workplace pensions allow a partial transfer. With some the act of transferring out opts you out of the workplace pension and you have to wait for the next window to rejoin which loses you employer contributions in the interim and could be a once a year opportunity]

• Or will it just get paid into my workplace pension and I can't move it, then with money from my bank savings I can pay that into my SIPP separately? [as above - it depends. It might be simplest to contribute enough to the workplace one to get match funding and then put the rest in a SIPP with a choice of funds you prefer. If you contribute via salary sacrifice then you would only get those NI savings with the workplace pension]

Also, when you say "Currently you are probably paying 0.5% to 0.2% ( depending on the size of your funds)", I have £1.9k in this particular workplace pension so I presume that'll be 0.2%?

more detail required - not all workplace pensions are the same. You would need to check with HR on what yours will allow

Albermarle

Savingforahouse123 said:

Albermarle said:

Savingforahouse123 said:

Hi I’m 28. My employer doesn’t offer salary sacrifice and my workplace pension isn’t invested in the best of places. 

Invested in B&CE GI (up to 100% shares). Their feee are:

Annual charge

An annual charge of £2.50 deducted during the scheme year.*

Management charge

A management charge of 0.5% of the value of your pension pot each year.

Rebate

A rebate on some of your management charge for savings over £3k.

I therefore want to invest in a SIPP as I think it’ll be lower fees and more choice of funds. I know I want to invest in the VG Global All Cap index fund so would a Vanguard SIPP be best or is there other options for super low fees? Thanks

First thing to check is that your employer is willing to pay their contribution into an alternative pension. The majority are not willing, so you have to stay with the current one. You may be able to transfer out at intervals ( again you need to check). Of course if you wanted to make extra contributions, this could be via the workplace pension or a new one you set up. 
Your pension fees are already pretty low, especially if you have a reasonable size fund to get the discounts.
You could maybe get lower but unless you have a very large pot the differences are going to be minor. In fact with many SIPPs you will pay more.
Currently you are probably paying 0.5% to 0.2% ( depending on the size of your funds) 
The biggest SIPP provider charges 0.45% just for the platform fee so + investment fund costs.
Vanguard would cost you 0.37% for a Global all cap fund.
The performance of this fund and the one you now have is very similar over 3 and 5 years.

So overall not sure there is much mileage in changing.

Thanks. Hard getting my head around this.

When you say "You may be able to transfer out at intervals ( again you need to check)" - Would this be something I check with my pension provider or my employer? Probably best to check with both to be on the safe side.

I'm struggling to understand this. Say I have £5000 in my workplace pension. If I set up a SIPP, can I move that £5k over then moving forwards will:

• My pension from work get paid into my existing pension then I move it into my SIPP? That is what you need to check

• Or will it just get paid into my workplace pension and I can't move it, then with money from my bank savings I can pay that into my SIPP separately?Yes you can do that, or just pay the extra into the work pension. 

Also, when you say "Currently you are probably paying 0.5% to 0.2% ( depending on the size of your funds)", I have £1.9k in this particular workplace pension so I presume that'll be 0.2%?

The management charge is 0.5% and this is the discount structure

• up to £3,000, no rebate is given
• over £3,000 and up to £10,000, we’ll give back 0.1%
• over £10,000 and up to £25,000, we’ll give back 0.2%
• over £25,000 and up to £50,000, we’ll give back 0.25%
• over £50,000, we’ll give back 0.3%.