SIPP choice - do I need to worry about the details?

Mr_Crabbs

• Looking to open a SIPP for an initially small pot (< £20k). I've been looking at and trying to understand the details of charges, but I'm not sure I need to; it seems to me the thing to do is commit to something and go from there:

• - I'm not sure I'll have a good view of exact trades and charges without actually doing it.

• - Provided I go for something with very low or heavily capped fees, differences are likely to be small and provider will not be critical.

• - It seems to me that if I go for something with no transfer out fees (or restrictions) I can transfer to another provider if it doesn't work out.

• - I'm likely to buy and hold so trading fees are maybe not too critical as they won't be regular.

• Currently options are AJ Bell, Vanguard or Scottish Widows; I considered the fee free providers (InvestEngine, Freetrade) but somehow am not convinced.Am I thinking right or making glaring errors? Thanks.

(apologies for the formatting, I can't sort it out!)

Marcon

Have you considered a non-SIPP personal pension? It sounds as if that might suit you better.

MallyGirl

with a low starting value the providers with %age based fees will be cheapest. I know that HL works that way and II doesn't - not sure on your choices from that point of view. With Vanguard you can only hold their products.

You are right that just getting started is best as you can always transfer - none of the usual ones charge to transfer out.

El_Torro

Do you have an employer? If so why not just contribute to your employer's pension scheme? Many (not all) allow one off contributions.

You are right in saying that the platform you go with doesn't matter too much, especially since the mainstream providers will let you transfer out without too much hassle.

What you invest in is a lot more important than the pension provider you choose. A global tracker or multi asset fund is probably all you need. As Marcon says there are providers out there with pre-built portfolios that are suitable for most investors.

Veloflyer

For me, Bell seems to offer the simplest experience at a relatively low cost. The on-line dealing and management of the SIPP is pretty easy and they have a good choice. They also tend to answer the 'phone…. However, the cost of various platforms pales into insignificance compared with the gains/losses on the investments made.

Bostonerimus1

If you go with Vanguard you will be limited to their funds. Some will see that as a negative - I see it as not an issue and maybe even a positive as too much choice of very similar products can lead to paralysis. If you are overly worried about trading fees then I suggest you think about how you are planning to manage your money as frequent trading is usually a bad thing.

cfw1994

https://forums.moneysavingexpert.com/discussion/comment/81934814#Comment_81934814

A good point about analysis paralysis.

Vanguard have some decent options at low cost.

Maybe have a listen to the words of Lars here - a good low cost global fund could be all you need.
I rather like their LS range: have a pal who went all in with LS80, although I prefer the sound of their newer Global 80% Equity Fund….

Albermarle

Vanguard have a minimum fee of £4 a month. So their platform fee of 0.15% is effectively higher until you reach a pot of £32K. However as mentioned paying £1 a month extra is not such a big deal, when a £20K pot/investments could easily move £500 in a day.