SIPP Recommendation

Sodium68

Hi I'm looking for recommendations/experiences for a SIPP company to take advantage of the £2880 + tax relief every year for a non earner.
I'll probably be taking the 25% tax free out each year and leaving the taxable element invested. 
Which are the easiest to deal with?
Thanks

dunstonh

Pretty much all of them meet the criteria you have given.

Sodium68

dunstonh said:

Pretty much all of them meet the criteria you have given.

Not all of them, for example Aviva require a minimum one-off deposit of £5000 so as I was looking to invest only £2880 in one go I can't use them.
Was hoping to get peoples experiences of different companies, like how quickly and easily can the 25% tax free element be accessed? 

amanda1024

In my experience, Fidelity are quick and easy to set up and happy to take a £2,880 deposit. Haven’t taken any money out though

Iwantcurlyhairtoo

My partner is in the similar advice as the original poster, unemployed due to disability and they don't have a pension so we're looking at which company to open up a pension and add in the £2.8k each year and leave it in until retirement age, with SIPPs we believe that you chose your own investments and we wouldn't know where to start, do any companies offer a pension where they automatically pick a range of investments for you? 

Voyager2002

amanda1024 said:

In my experience, Fidelity are quick and easy to set up and happy to take a £2,880 deposit. Haven’t taken any money out though

Another vote for Fidelity, although their systems are a bit clunky. And do be aware of how their charges work.

I think that II probably offers better service, but they have an extra £100 per year fee for holding a SIPP in drawdown, so this would probably not be worthwhile for you.

MallyGirl

Iwantcurlyhairtoo said:

My partner is in the similar advice as the original poster, unemployed due to disability and they don't have a pension so we're looking at which company to open up a pension and add in the £2.8k each year and leave it in until retirement age, with SIPPs we believe that you chose your own investments and we wouldn't know where to start, do any companies offer a pension where they automatically pick a range of investments for you? 

If you want to keep it simple then a multi asset fund would work. There are several mentioned on here on a regular basis:
Vanguard LifeStrategy - you choose the proportion of equity to non equity which approximates to a risk level
HSBC Global Strategy - have names like 'HSBC Global Strategy Balanced' and 'HSBC Global Strategy Dynamic' which give clues to the level of risk
Blackrock have some too
This sort of fund is a 'buy and forget' - no fiddling about or reallocations required. Perfectly fine for the small values you are talking about.
HL as a provider are one of the more expensive ones but they charge on a percentage of value basis so for small holdings that works in your favour.

Iwantcurlyhairtoo

Thanks Mallygirl, will have a look at those today as the simpler the better!

Albermarle

amanda1024 said:

In my experience, Fidelity are quick and easy to set up and happy to take a £2,880 deposit. Haven’t taken any money out though

I think Fidelity have a minimum fee of £90 pa, so not good for smaller amounts.

HL are usually recommended for this, as they just charge 0.45% on any amount AFAIK.

FIREmenow

Sodium68 said:

dunstonh said:

Pretty much all of them meet the criteria you have given.

Not all of them, for example Aviva require a minimum one-off deposit of £5000 so as I was looking to invest only £2880 in one go I can't use them.
Was hoping to get peoples experiences of different companies, like how quickly and easily can the 25% tax free element be accessed? 

Have just helped a family member set up a personal pension on Vanguard's platform. There wasn't a high minimum to make your first cash deposit (we put the 2880 in via debit card during account set-up). Once you are ready to invest in a fund the initial minimum deposit per fund is £500, but after that is £25.  Only Vanguard products are available so you would have to be happy with those.

Was all set up same day.

Platform fees are 0.15%, any cash in the account is not charged the platform fee, only that which is invested. No charges for trading, interest rate on cash in account is currently 2.6%. No drawdown fees. Each investment choice has it's own charges but they are the same whichever platform you use.

On any platform, the tax rebate takes something like 6-11 weeks to appear in the account, but you can take 25% of your initial 2880, then make another withdrawal once the 720 appears if you don't want to wait. I believe all of the platforms require you to go through a process before starting drawdown to check you are not falling for a pension scam, but after that it is a bit quicker.

Monevator have a broker comparison table for fees - on the line for SIPP under each platform it will say in the end column what they think that platform is particularly good for, eg for a pot under/over a certain size. https://monevator.com/compare-uk-cheapest-online-brokers/

dunstonh

Not all of them, for example Aviva require a minimum one-off deposit of £5000 so as I was looking to invest only £2880 in one go I can't use them.

That must be a limitation on the product you are looking at. Aviva do accept £3600 on both their stakeholder pension and their platform SIPP via advisers.

it is rare for providers to have a minimum like that. Most are around £1,000.