Leave it or move it?

degs88

QrizB said:

degs88 said:

If by excess personal allowance you mean the annual 30k for ISA's

We're talking about income tax.

If you withdraw your entire SIPP, 25% of it will be tax-free but the rest will be taxable income.

If you're already in receipt of your SP and a LGPS pension, you'll probably have used up your personal allowance and will pay at least 20% on the rest. You might even enter the hogher-rate tax band.

Oh, yes, I missed that, thanks. OK, so I leave it in a SIP, do I have any way of reducing my costs?

QrizB

degs88 said:

QrizB said:

degs88 said:

If by excess personal allowance you mean the annual 30k for ISA's

We're talking about income tax.

If you withdraw your entire SIPP, 25% of it will be tax-free but the rest will be taxable income.

If you're already in receipt of your SP and a LGPS pension, you'll probably have used up your personal allowance and will pay at least 20% on the rest. You might even enter the hogher-rate tax band.

Oh, yes, I missed that, thanks. OK, so I leave it in a SIP, do I have any way of reducing my costs?

You can move to lower-cost funds with HL.

Or you can move the entire SIPP to a different provider (either DIY or IFA), and pay lower charges as well as using lower-cost funds.

SVaz

I have tracker funds with HL,  combined platform and fund charges are 0.55%.

Might not be the absolute cheapest but their service and communication are excellent and I can access my pension online without having to  speak to anyone. 

degs88

Thanks. I'm not trying to get the cheapest necessarily, it's just my costs seem very high at the moment. 

To move to lower cost funds with HL, do I need to move it out of the SIP?

Apologies for my poor terminology. 

SVaz

You can choose different funds easily with HL,  have you got the app or do you use the website?
The Sipp is just the account to hold your investments, they charge 0.45%. 
You sell part or all of what you have and pick an alternative. 

If you create a watchlist in the app, you can compare the different fund charges.
For example,  I hold : 
Fidelity Index world,  the charge is 0.12%

HSBC Global strategy Dynamic, 0.18% 
HSBC All world index ; 0.13%

Royal London Short term money market ; 0.10%
I use income funds and pay the charges from the cash income,  the cash builds up and because the Royal london fund pays more interest than holding cash at the moment, I top up every so often. 

My monthly contribution is split evenly between the other 3 funds. 

MX5huggy

Have I missed it? But have you said approximately the value of this SIPP? 

The thoughts could be different for £5k £50k or £500k. 

SVaz

1st post mentions £70k.

nicknameless

Just to point out you can hold an etf with HL for fees capped at £200 per year.  They are not extortionate for everything.  The 'you must move from HL' message doesn't hold water for everything.  Cheap ETF, cheapish fees.

OP needs to understand what they want and how to achieve first.

edited to add - hadn't got far enough in thread to see this has been pointed out above (sorry).

nicknameless

degs88 said:

Thanks. I'm not trying to get the cheapest necessarily, it's just my costs seem very high at the moment. 

To move to lower cost funds with HL, do I need to move it out of the SIP?

Apologies for my poor terminology. 

I do wonder if taking a few days to try to understand options within a SIPP, and implications at withdrawal, is worthwhile.  Please don't take this the wrong way but if you are asking whether you need to move money out a of a SIPP to access lower costs that does ring certain alarm bells about your knowledge re the SIPP (options within and options for withdrawal).  I know that is why you are here but I would do some basic research as opposed to taking advice simply from a forum.

degs88

Thanks for the comments. Yes, 70k. I think I need to point out that I don't need the SIPP as a pension per se. It's served its purpose which was to get back some tax when I was made redundant and effectively went into retirement. It doesn't get any contributions and never will. I was leaving it to hopefully grow a bit but I'm paying far too high fees for the service I need or am getting.
I understand now that to 'cash it in' as I have rather clumsily said above is not a great idea so just looking at what options I may have either within HL or elsewhere.