Choosing a pension provider for a new SIPP - help!

What_time_is_it

I have around £10,000 (plus £2,500 government top up) which I want to invest in a new SIPP. I took redundancy recently so can no longer contribute to a company pension. I would like to contribute more than £10k but I am limited by my salary for 2024/2025. So I think that this is the max I can put in before April 6th. And I need to do it before the current tax year ends!

I have narrowed it down to the following pension providers, listed here in order of my current preference:

Vanguard
Hargreaves Lansdown
AJ Bell
Investengine

Which one should I go with?
I want something I can put additional contributions of £3,600 into in future years. Maybe more if I get back to work. I am 47, looking to fully retire before 60 and I currently favour drawdown. I will also be opening a stocks and shares ISA and maybe other investment funds during 2025/26 if that makes any difference for fees, ease of use, etc?

I have two other pensions from my previous jobs. Split between DB and a DC pot. So this is basically a third pension and a way of making the most of the tax efficiencies with pensions contributions.

Any thoughts are very welcome. Particularly for anyone who has experience with any of the above providers or has a strong opinion about any of them, or even would strongly recommend another different provider!

Thanks!

Marcon

What_time_is_it said:

I have around £10,000 (plus £2,500 government top up) which I want to invest in a new SIPP. I took redundancy recently so can no longer contribute to a company pension. I would like to contribute more than £10k but I am limited by my salary for 2024/2025. So I think that this is the max I can put in before April 6th. And I need to do it before the current tax year ends!

Sidetracking slightly...you say you are limited by your salary, but I wonder if you had any (taxable) redundancy pay which might increase the amount you could contribute to your pension in the current tax year?

dunstonh

Which one should I go with?

One is a restricted platform
Two are SIPPs
One is platform that only offers ETFs.

So, you have four platforms with different functionality and options.

It may help us to understand how your research has narrowed down to those.
Assumption 1: you are looking at only Vanguard funds. If not, then the Vanguard platform would not be on there.
Assumption 2:  you are looking to use ETFs and not UT/OEICs.  If not, then investengine would not be on there.

What other functionality are you looking for?

Sarahspangles

What_time_is_it said:

I have two other pensions from my previous jobs. Split between DB and a DC pot. So this is basically a third pension and a way of making the most of the tax efficiencies with pensions contributions.

Third post with questions….

If you might decide to combine your DC pot with the SIPP then suggestions may be different. Monevator has tables so you can compare charges, and the size of the pot is a key factor.

Also worth checking if you could contribute to your existing DC pension. Apparently some workplace DC pensions have lower charges and these persist even when you have left the employer.

What_time_is_it

@dunstonh
Thanks for the response. I afraid your knowledge is way in advance of where I am at! I’ve been learning over the last couple of weeks and those 4 companies kept coming up with good reviews and/or low fees. Beyond that I can’t really answer your questions as I don’t have sufficient understanding of the terms you use.

What_time_is_it

@Marcon
Thanks for the reply. I got just over £30k for my redundancy pay. The taxable element was around £750 and that is included in my annual salary calculations. I don’t think I can use anything else, but you sound much more clued up than I am so I could well be wrong! Perhaps I have made a mistake? My P45 shows a total taxable salary for 2024/25 of £12,500. I used salary sacrifice to the max in my old job. So I think I can contribute a total of £12,500 (including the HMRC “top up”) this year? I can’t carry forward any Annual Allowance as I have never earned over £60 in a single year.

Does that help?

What_time_is_it

Sarahspangles said:

What_time_is_it said:

I have two other pensions from my previous jobs. Split between DB and a DC pot. So this is basically a third pension and a way of making the most of the tax efficiencies with pensions contributions.

Third post with questions….

If you might decide to combine your DC pot with the SIPP then suggestions may be different. Monevator has tables so you can compare charges, and the size of the pot is a key factor.

Also worth checking if you could contribute to your existing DC pension. Apparently some workplace DC pensions have lower charges and these persist even when you have left the employer.

Thanks @Sarahspangles (great name!)
I can’t make any further contributions to me previous employer scheme. I’ve checked that and it is definite.

i am unlikely to combine my DC pot with a SIPP as my DC pot doesn’t incur any fees. It’s with USS if that helps? Never say never obviously, but at the moment I’d say it’s unlikely.

Albermarle

Sarahspangles said:

What_time_is_it said:

I have two other pensions from my previous jobs. Split between DB and a DC pot. So this is basically a third pension and a way of making the most of the tax efficiencies with pensions contributions.

Third post with questions….

If you might decide to combine your DC pot with the SIPP then suggestions may be different. Monevator has tables so you can compare charges, and the size of the pot is a key factor.

Also worth checking if you could contribute to your existing DC pension. Apparently some workplace DC pensions have lower charges and these persist even when you have left the employer.

As above. Often people assume that after leaving their employer they can no longer contribute to their ex workplace pension. If it is a DC pension, you often can still contribute, as many effectively become your personal pension. It needs checking first though.
Also many workplace pensions have low charges. If the employer has negotiated discounts/a low charge, you should still be able to benefit from that. 
I have one which has a platform charge of 0.1% and many basic funds also only 0.1%, although that is particularly cheap.( the website is poor, as is the customer service, but its cheap !)

DRS1

Some feedback on one of the four

HL Slow / Busy This Year — MoneySavingExpert Forum

What_time_is_it

Albermarle said:

Sarahspangles said:

What_time_is_it said:

I have two other pensions from my previous jobs. Split between DB and a DC pot. So this is basically a third pension and a way of making the most of the tax efficiencies with pensions contributions.

Third post with questions….

If you might decide to combine your DC pot with the SIPP then suggestions may be different. Monevator has tables so you can compare charges, and the size of the pot is a key factor.

Also worth checking if you could contribute to your existing DC pension. Apparently some workplace DC pensions have lower charges and these persist even when you have left the employer.

As above. Often people assume that after leaving their employer they can no longer contribute to their ex workplace pension. If it is a DC pension, you often can still contribute, as many effectively become your personal pension. It needs checking first though.
Also many workplace pensions have low charges. If the employer has negotiated discounts/a low charge, you should still be able to benefit from that. 
I have one which has a platform charge of 0.1% and many basic funds also only 0.1%, although that is particularly cheap.( the website is poor, as is the customer service, but its cheap !)

Thanks @Albermarle.
I have a DB pension with LGPS and a USS pension which has both a DB and a DC element to it. I’m pretty sure that I cant make any further contributions into either as a deferred member. Of course if I got a job in that sector again I could “resurrect” one of them and continue to make contributions then. But for now I don’t think it’s possible.

dunstonh

What_time_is_it said:

@dunstonh
Thanks for the response. I afraid your knowledge is way in advance of where I am at! I’ve been learning over the last couple of weeks and those 4 companies kept coming up with good reviews and/or low fees. Beyond that I can’t really answer your questions as I don’t have sufficient understanding of the terms you use.

You need to be wary of what you read.    There is some good things on the internet and some ruddy awful things along with a lot of out-of-date information.

Vanguard platform only offers a range of Vanguard funds.  So, if you wanted funds from the whole of market, then you would not select Vanguard.
Investengine only offers ETFs.   ETFs are a more advanced type of fund.   You get no FSCS protection and there are types that carry additional risks that are not present on the more mainstream Unit Trust/OEIC funds.   That doesn't make ETFs wrong.  You need to have more knowledge and understanding of them to avoid pitfalls.  Especailly as there is no FSCS protection on ETFs.
HL is one of the most expensive platforms out there if you use OEIC/UTs.  However, they can be very cheap if you use ETFs. HL has a good reputation for new investors.
AJ Bell has multiple offerings.

Before you pick a provider, you probably want to decide how you want to invest.    Only when you know how you want to invest, will you know which platforms you should be looking at.