Choosing a pension provider for a new SIPP - help!

poseidon1

OP had a look at some of your prior posts ( how to invest £500k, setting up SIPP, etc).

You have been dipping into the forums for ideas and suggestions, but I don't get the sense of sufficient 'joined up ' strategic thinking from your perspective or that you have acquired enough  understanding of terminology  and how different investments work for the forums to help you devise a coherent roadmap for future action.

For example you are looking at self invested pension schemes but freely admit ( at this stage) you do not know the difference between unit trusts and etfs.

SiPPs and ISAs are ultimately  tax advantaged wrappers.  The effect  on investment growth of platform fees is important,  but cost should not be the sole deciding factor for someone like yourself who has a great deal to learn, if the ultimate intent is to pursue a DIY approach to your investing and pension planning. In this respect although the likes of  Hargreaves Lansdown is at the more expensive end of DIY investing, they have a very good suite of learning aids for beginners and creditable customer services to hold your hand when needed.

Many of the posters here have long been immersed in the world of investing (in all its various guises) as well as  researching pensions and financial modelling strategies over the years, to an extent that I would think  it has become second nature to them. It is not that easy to distill and  convey all that accumulated knowledge and experience in a manner  that would  best suit your objectives and level of understanding.

It is also not clear that given the desire for you and your partner to retire in your fifties, whether what you are trying to learn and understand represents a joint enterprise between you, or whether you are taking the primary lead in the  planning for you both.

In one of your earlier posts, you did raise the subject of perhaps consulting an IFA.

 I am wondering if at this stage in your exploration of investment and general financial planning possibilities whether now might be a good time for you and partner to have a one to one consultation with a suitable IFA to help draw all the various threads together?  

At some point you and your partner may well achieve  your early retirement objectives  which you  (like many of the posters here) are able to confidently maintain on a  DIY basis, but perhaps some professional help along the way might not go amiss.

DRS1

That is an excellent post from @poseidon1.  The only thing I would add is that if you want to set up a SIPP and contribute your £10k this tax year then you ought to get a move on.
Pick one of HL or AJBell. I only suggest those on the basis they will likely give you the widest choice of investment.  Or you can just pick whatever is cheapest for the amount you will contribute. If you don't like the one you pick you can move the SIPP to another provider later.

What_time_is_it

Thanks @poseidon1

You make lots of valid points and are very clear in your assessment. I’ve tried to ask around on this forum for advice and experience in specific areas and using specific questions so as not to pose too complex a set of questions. That’s why I’ve narrowed my focus to different areas where possibles but you are correct - we do need to be fully joined up.

On this particular issue there is the time pressure of the end of the tax year for me to be able to invest this £12.5k into a private pension. So I really do need to decide how to do it fairly quickly. Perhaps it’s best to pay a little more and have a provider manage this ha in a more hands on way? And maybe I could transfer to another provider and/or different scheme later if I changed my mind? But if I don’t act quickly I will miss out on £2.5k tax relief that I won’t be able to get back.

I’m very aware that I’m an amateur mixing it with some seriously clued up people on here! And I really appreciate all the opinions and thoughts that people have given me.

What_time_is_it

DRS1 said:

That is an excellent post from @poseidon1.  The only thing I would add is that if you want to set up a SIPP and contribute your £10k this tax year then you ought to get a move on.
Pick one of HL or AJBell. I only suggest those on the basis they will likely give you the widest choice of investment.  Or you can just pick whatever is cheapest for the amount you will contribute. If you don't like the one you pick you can move the SIPP to another provider later.

Thanks @DRS1

Agreed. Perhaps so need to just get something set up with one of the major players before the tax year end and then find out more and revisit things after April 6th.

ElsieAtOps

Purely commenting on the choice of SIPP providers, as many have pointed out, Vanguard only offer their funds (active, passive and ETF).
I have used Vanguard and found them OK.
Hargreaves Lansdown I have also used and are OK also, and their funds research/comparison tools are useful (I still use though no account with them now).
I actually use ii now. Not on your list, not sure why not. 
I prefer HL but ii are cheaper for me at a fixed £ per month not a %.
Investengine also now offer a basic ETF SIPP I think, and cheaply.
Other providers too.

Fundamentally, which provider will work out cheapest for you ATM? And in a few years time? Do the maths. (Including how often you might want to buy and sell.) You can always swap between them with not too much hassle, especially if they both hold the same funds.

poseidon1

What_time_is_it said:

DRS1 said:

That is an excellent post from @poseidon1.  The only thing I would add is that if you want to set up a SIPP and contribute your £10k this tax year then you ought to get a move on.
Pick one of HL or AJBell. I only suggest those on the basis they will likely give you the widest choice of investment.  Or you can just pick whatever is cheapest for the amount you will contribute. If you don't like the one you pick you can move the SIPP to another provider later.

Thanks @DRS1

Agreed. Perhaps so need to just get something set up with one of the major players before the tax year end and then find out more and revisit things after April 6th.

Glad to have been able to offer a more general perspective. Absolutely agree, time now is of the essence, so pay a little more in fees to get the SIPP underway. Given the very broad investment choices offered by HL or AJB would agree with DRS1 either would be suitable to dip your toe. 

I learnt a fair amount from the HL platform, when I selected them for my SIPP back in 2009 ( I also used them for a very small private sector DB transfer at the time).

However, have since migrated my SIPP to the Interactive Investors platform purely for their competitive fixed fee which makes sense once the SIPP exceeds £100k. However I still have some stocks and shares ISA funds with HL since they are better for accessing newly issued Government Gilts ( an area of investment which may well come to your attention at some point).

It is very much ' horses for courses '  when it comes to finessing your investment platform choices,  and I can certainly attest that one never stop learning,  as you will no doubt appreciate in the months and years to come.

Best of Luck!

What_time_is_it

Thanks again.

So maybe the best option for me at this stage, given my lack of knowledge, naivety on pensions, and the imminent end of year deadline, is to set up a ready made plan for now while I get to grips with the complexities of how it all works?

HL have a ready made plan with a 0.75% charge, and AJ Bell have something similar with a 0.45% charge. Both seem to allow subsequent changes, without charge, to either another provider or a more hands on approach to investing. I could open one of these with my £12.5k next week, follow up with £3.6k after April 6th, and thereby get £16k in total into a personal pension, maximise the tax efficiency and buy myself some more time to make more informed decisions later on.

The difference between the charges between these 2 providers on my £16k investment would be about £50 a year, so not massive in the context of tax relief.

Maybe that is the best approach for me at this time?

Sarahspangles

What_time_is_it said:

Thanks again.

HL have a ready made plan with a 0.75% charge, and AJ Bell have something similar with a 0.45% charge.

AJ Bell have some offers running, I’m not sure if they are for current customers onky but look out for them if you do use them. One is a prize draw you can enter if you top up a SIPP and there’s an Amazon voucher for transferring or opening an ISA. You need to click a link to confirm you want these offers.

HL may have current offers too.

There are frequently offers to transfer platforms, worth checking when you have a longer term plan worked out.

poseidon1

AJB have a number of incentives running at the moment - see below

https://www.ajbell.co.uk/our-services/special-offers

By contrast, very little from HL, and then only payable after the 1 year qualification period.

What_time_is_it

poseidon1 said:

AJB have a number of incentives running at the moment - see below

https://www.ajbell.co.uk/our-services/special-offers

By contrast, very little from HL, and then only payable after the 1 year qualification period.

Thanks. Looks like AJ Bell will give a £150 Amazon voucher for new accounts with over £10k in by 30th April 2025.

And they also have have a £100\£100 recommend a friend scheme where each get a £100 Amazon voucher.