advice on regular payments into a SIPP please

MallyGirl

II list that one in both acc and inc form. It is just a Vanguard fund. You can transfer 'in specie' as opposed to transferring as cash and buying at the other end but it can take longer for the transfer.

sadexpunk

"II list that one in both acc and inc form. It is just a Vanguard fund. You can transfer 'in specie' as opposed to transferring as cash and buying at the other end but it can take longer for the transfer."

apologies sarah, i dont understand any of those terms :-)  acc?  inc?  in specie?

and are we talking ISA rather than SIPP?

Sarahspangles

sadexpunk said:

I have my previous emplyers DB scheme that we decided was better left alone, and my current firefighters pension which is also DB.  i pay around £500pm into that alongside emplyers contributions.  does this affect anything?

I think that is an LGPS scheme, but I’m not really sure, because I think you’re in Scotland? All it means is that if you want to pay in a large sum one year you need to know your Pension Input Amount to calculate how much of your Annual Allowance is available.

sadexpunk

"I think that is an LGPS scheme, but I’m not really sure, because I think you’re in Scotland? "

nope, im in england :-) 

MallyGirl

sadexpunk said:

"II list that one in both acc and inc form. It is just a Vanguard fund. You can transfer 'in specie' as opposed to transferring as cash and buying at the other end but it can take longer for the transfer."

apologies sarah, i dont understand any of those terms :-)  acc?  inc?  in specie?

and are we talking ISA rather than SIPP?

If you buy the accumulation version (acc) then any dividends generated from the underlying equities in that fund get reinvested in the fund and you never see them. The income version (inc) pays out dividends to you which require you to reinvest them. Acc is simpler for you to use. You will already have one of the 2 options in HL.

'in specie' means transferring each investment as it is - no selling to cash and transferring the cash - but it takes longer to do and only works if the receiving pension offers exactly the same investments.

LHW99

I think you are suggesting / asking about two things, effectively.

1) Should I (how do I) transfer from HL to II?

You would go to the II website, and ask them to transfer the pension from HL. You need open a SIPP with II first:

https://www.ii.co.uk/ii-accounts/sipp/transfer-my-pension

You will need the details of your HL account, roughly how much you have in total, and if you are happy for your investments to transfer as they are (If II can't transfer something they will tell you and ask you to confirm what you want to happen). You also need to give them details of a bank account that could receive payments (in due course) / pay fees / make payments in.

2) How do I set up a DD to pay in?

Once your Sipp is open, you can do this directly from the new account when logged in.

II is a little bit clunkier / different from HL, but has pretty much all the same functionality. Generlly it seems that once you have about £50k+ in funds you would be cheaper with II.

"Funds" are the ones (known as OIECs, used to be Unit Trusts) that aren't traded in real time - your request is gathered up, and trades happen once a day.

Shares, investment trusts and ETF's (last two can also be called funds) are traded in real time, and are cheaper with HL, if all your investments are that type.

sadexpunk

thanks LHW, very helpful.  ill get cracking with opening a SIPP with them and start a transfer process.

sadexpunk

II SIPP opened and 'in-specie' transfer requested.

thank you very much

AlanP_2

sadexpunk said:

"I think that is an LGPS scheme, but I’m not really sure, because I think you’re in Scotland? "

nope, im in england :-) 

You will still need to know your Pension Input Amount for the DB pension you are accruing each year with the Fire Service.

Your annual statement will probably tell you, BUT, it will only tell you what last year's was, not this year's.

This is an inherent complication with DB schemes.

The amount you pay in each month is irrelevant, it is a calculation (based on set HMRC rules) of how much the value of the overall DB pension has increased.

It can be a high value and needs to be considered against the £60k annual allowance limit.

sadexpunk

just looking at last years statement now.  i assume the Pension Input Amount is the same as the 'standard Annual Allowance'?
in my case the statement states that its £40,000.  no idea why lower than my last years pay but it is what it is and wont affect me really because it states that my pension savings for the year before were 13k.

so..... i assume im not really troubling any limits anywhere if i decide to also chuck 10k lump sum into the new II SIPP when its up and running.  that about right?

thanks