Best SIIP

heytoki

Hello all,

i currently have my pension account with Aviva through my employer. the annual management charge is at the moment £9.4 a month and that will increase as the amount invested grows. 

i am thinking of transferring my work pension to a SIIP where i have also more investing options like a wider range of funds, and shares which Aviva currently do not have.

What is the best cost effective SIIP outthere?

Thanks 

MallyGirl

it depends on the value being held - %age based fees are better for lower values and fixed fee are better for higher values. It also depends on what functionality you want and what investments you would like to make.
btw it is a SIPP not a SIIP - that might help when searching on the forum.

Marcon

heytoki said:

Hello all,

i currently have my pension account with Aviva through my employer. the annual management charge is at the moment £9.4 a month and that will increase as the amount invested grows. 

That'll be true of virtually any defined contribution scheme. On a modern contract charges are almost invariably based on a %age of the amount invested.

heytoki said:

i am thinking of transferring my work pension to a SIIP where i have also more investing options like a wider range of funds, and shares which Aviva currently do not have.

What is the best cost effective SIIP outthere?

Thanks 

Two things to check first:

1. if you transfer out of your employer's pension, are you then deemed to have 'opted out'? If so, you can ask to rejoin, but the employer can delay doing so for up to 12 months and you'll miss out on the employer contribution during that period
2. charges are related to the amount you have in the pension but also your choice of funds within the pension. Without knowing what your current charges/fund choices are (and whether your employer has obtained preferential terms for employees), it's impossible to comment on an informed basis. So perhaps you could confirm, please?

There might be a wider fund choice but are you sufficiently financially savvy to make effective use of any extra choices - ie do you have a good understanding of financial matters generally, and investing for the long term in particular? Given that you asked a similar question last year but don't seem to have done anything further, or followed up in the suggestion made then, it's hard to know: https://forums.moneysavingexpert.com/discussion/6539559/work-place-pension-to-sipp#latest

You refer to the 'best cost effective SIPP...' but that means taking into account both charges and fund performance...and you've said nothing about your age, attitude to risk etc.

dunstonh

i currently have my pension account with Aviva through my employer. the annual management charge is at the moment £9.4 a month and that will increase as the amount invested grows. 

£9.40 doesnt tell us much without knowing the amount in it.

SIPPs are not necessarily cheaper, as it depends on what you invest.

SIPPs are also priced differently across providers depending on the asset types you are going to invest in, the frequency and what functionality you are after.    So, there is no one-best option.

Juno_Moneta

The big four will come up again and again if you search for reviews (AJ Bell, Hargreaves Lansdown, Fidelity, Interactive Investor).

And as someone says above it depends on what you want to invest in and how often - ie what charges you will pay.

To be honest you should start with this very sites own summary here:

https://www.moneysavingexpert.com/savings/cheap-sipps/

heytoki

dunstonh said:

i currently have my pension account with Aviva through my employer. the annual management charge is at the moment £9.4 a month and that will increase as the amount invested grows. 

£9.40 doesnt tell us much without knowing the amount in it.

SIPPs are not necessarily cheaper, as it depends on what you invest.

SIPPs are also priced differently across providers depending on the asset types you are going to invest in, the frequency and what functionality you are after.    So, there is no one-best option.

i currently have £80K

Marcon said:

heytoki said:

Hello all,

i currently have my pension account with Aviva through my employer. the annual management charge is at the moment £9.4 a month and that will increase as the amount invested grows. 

That'll be true of virtually any defined contribution scheme. On a modern contract charges are almost invariably based on a %age of the amount invested.

heytoki said:

i am thinking of transferring my work pension to a SIIP where i have also more investing options like a wider range of funds, and shares which Aviva currently do not have.

What is the best cost effective SIIP outthere?

Thanks 

Two things to check first:

1. if you transfer out of your employer's pension, are you then deemed to have 'opted out'? If so, you can ask to rejoin, but the employer can delay doing so for up to 12 months and you'll miss out on the employer contribution during that period
2. charges are related to the amount you have in the pension but also your choice of funds within the pension. Without knowing what your current charges/fund choices are (and whether your employer has obtained preferential terms for employees), it's impossible to comment on an informed basis. So perhaps you could confirm, please?

There might be a wider fund choice but are you sufficiently financially savvy to make effective use of any extra choices - ie do you have a good understanding of financial matters generally, and investing for the long term in particular? Given that you asked a similar question last year but don't seem to have done anything further, or followed up in the suggestion made then, it's hard to know: https://forums.moneysavingexpert.com/discussion/6539559/work-place-pension-to-sipp#latest

You refer to the 'best cost effective SIPP...' but that means taking into account both charges and fund performance...and you've said nothing about your age, attitude to risk etc.

I contacted Aviva and they confirmed they can transfer the pension to a new provider with no fees applied. I wouldnt lose my employer contributions so after the transfer monthly contributions would continue. Then i would have to do the same thing (i.e. yearly). 
I have a good understanding of the market and where to invest and with Aviva i am limited with the options given. 

Qyburn

Marcon said:

if you transfer out of your employer's pension, are you then deemed to have 'opted out'? If so, you can ask to rejoin, but the employer can delay doing so for up to 12 months and you'll miss out on the employer contribution during that period

OP may be able to do a partial transfer leaving the workplace scheme still alive to receive employer's contributions.

dunstonh

i currently have £80K

That means your charge equates to around 0.14% of the value.

It also means that a SIPP is likely to cost you more than the existing plan.

bjorn_toby_wilde

heytoki said:

dunstonh said:

i currently have my pension account with Aviva through my employer. the annual management charge is at the moment £9.4 a month and that will increase as the amount invested grows. 

£9.40 doesnt tell us much without knowing the amount in it.

SIPPs are not necessarily cheaper, as it depends on what you invest.

SIPPs are also priced differently across providers depending on the asset types you are going to invest in, the frequency and what functionality you are after.    So, there is no one-best option.

i currently have £80K

Marcon said:

heytoki said:

Hello all,

i currently have my pension account with Aviva through my employer. the annual management charge is at the moment £9.4 a month and that will increase as the amount invested grows. 

That'll be true of virtually any defined contribution scheme. On a modern contract charges are almost invariably based on a %age of the amount invested.

heytoki said:

i am thinking of transferring my work pension to a SIIP where i have also more investing options like a wider range of funds, and shares which Aviva currently do not have.

What is the best cost effective SIIP outthere?

Thanks 

Two things to check first:

1. if you transfer out of your employer's pension, are you then deemed to have 'opted out'? If so, you can ask to rejoin, but the employer can delay doing so for up to 12 months and you'll miss out on the employer contribution during that period
2. charges are related to the amount you have in the pension but also your choice of funds within the pension. Without knowing what your current charges/fund choices are (and whether your employer has obtained preferential terms for employees), it's impossible to comment on an informed basis. So perhaps you could confirm, please?

There might be a wider fund choice but are you sufficiently financially savvy to make effective use of any extra choices - ie do you have a good understanding of financial matters generally, and investing for the long term in particular? Given that you asked a similar question last year but don't seem to have done anything further, or followed up in the suggestion made then, it's hard to know: https://forums.moneysavingexpert.com/discussion/6539559/work-place-pension-to-sipp#latest

You refer to the 'best cost effective SIPP...' but that means taking into account both charges and fund performance...and you've said nothing about your age, attitude to risk etc.

I contacted Aviva and they confirmed they can transfer the pension to a new provider with no fees applied. I wouldnt lose my employer contributions so after the transfer monthly contributions would continue. Then i would have to do the same thing (i.e. yearly). 
I have a good understanding of the market and where to invest and with Aviva i am limited with the options given. 

You’ll find a good table comparing charges on the Monevator site. 

Albermarle

heytoki said:

Hello all,

i currently have my pension account with Aviva through my employer. the annual management charge is at the moment £9.4 a month and that will increase as the amount invested grows. 

i am thinking of transferring my work pension to a SIIP where i have also more investing options like a wider range of funds, and shares which Aviva currently do not have.

What is the best cost effective SIIP outthere?

Thanks 

£9.40 a month on a fund of £80K is exceptionally cheap.

I suspect this is only Aviva's platform/management charge, and there will be a charge for the investment fund(s) as well. For the latter they are paid internally within the fund, so you do not see an actual payment coming out of your account.