Where to start?

Rach273

Hello all.

My husband has gone self employed and I am very conscious that we need to sort out a pension for him. However, I haven't a clue where to start! (I have a defined benefit pension with the LGPS so it's not something I have ever really researched).

He has a small pot (circa £12k) with Aegon and about the same with NEST that we have set up a DD debit for to continue making contributions in the interim, but from searching this forum I understand that the fees for NEST are rather high.

He had a call with St James Place but found them rather pushy towards buying their funds, so looking to see what we can do ourselves instead.

Am I right in thinking that we need to open up a SIPP with whoever has the lowest fees for the fund we like and start making monthly contributions?

What about transferring the existing pots? Can this be done at any time or do we need to do it at the start? Or should we leave them where they are?

Sorry for all the basic questions, would love to understand more so any guidance appreciated.

Linton

Having chosen a SIPP provider (cost is an important factor but not necessarily the only one) your husband can then open the SIPP,p and make contributions and/or transfer in a DC pension at any time.

To transfer an existing pension into a SIPP you simply ask the receiving SIPP to transfer in the old pensions. There will probably be an online form. The SIPP provider is then responsible for making it happen.

 In general you can ask that the investments be transferred as existing funds or as cash.  However since the SIPP won’t have access to NEST funds that transfer would need to be in cash.

Having got the cash in the SIPP the next job is to use it to buy appropriate funds.

If your husband does want advice I suggest he talks to an Independent Financial Advisor rather than a salesman from SJP or similar who are only allowed to discuss their company’s own offerings.

However for the small amount of money currently held in the pension it may well not be worth paying for advice either for your husband or the advisor.

JSL_2

I'm not an expert but I'm self employed for 35 years. Perhaps find a IFA, negotiate a fee for transfer of your existing pots in to a new pension and set up monthly contributions. 5 years ago one of my pots ( My largest), went to safe funds as I approached 60th Birthday. I went to my IFA and got all my pots combined in to one pension with Royal London . It has worked out well , although the last 3 years have been poor due to the market situation.

Beddie

Rach273 said:

Hello all.



Am I right in thinking that we need to open up a SIPP with whoever has the lowest fees for the fund we like and start making monthly contributions?

What about transferring the existing pots? Can this be done at any time or do we need to do it at the start? Or should we leave them where they are?

Yes to opening up a SIPP. Don't delay, just pick one. Even a more expensive provider like Hargreaves Lansdown is fine for now, as they are % based and therefore cheap on low balances. Can always be transferred at some point.

Pick a global fund or something like Vanguard lifestrategy, lots of chat about funds on here and elsewhere.

And you can transfer the others at any time, now or later. Have you discounted the Aegon one? You could pay into that if it has the funds you are looking at.

You really don't need an adviser at this time.

xylophone

https://www.aegon.co.uk/customer/products/individual-savings/retiready-personal-pension

OP, is the above what your husband has? If so, he could consider the transfer of NEST into Aegon and then continue to contribute to Aegon.

Or he could consider a SIPP with the likes of Hargreaves Lansdown or Fidelity or AJ Bell - there are many others.

https://monevator.com/compare-uk-cheapest-online-brokers/

Both pensions could be transferred in and he could continue to contribute to the SIPP.

https://monevator.com/low-cost-index-trackers/

https://monevator.com/best-global-tracker-funds/

https://monevator.com/passive-fund-of-funds-the-rivals/

Or you might consider Vanguard's own  offering.