SIPP help please

Gobigorgohome

I’ve joined a new company and my employer have asked for pension details to set up my salary sacrifice (to keep annual under £100k)

They don’t have one so I need to choose one myself.

I am thinking of Aviva or Aj Bell. I’m not very pension clued up and just want something easy but to have a good return. I am planning of adding £50k a year.
can someone help and explain in easy to understand terms if any of these are good ones or what should I do?

Isthisforreal99

Why doesn't your employer have a pension scheme? Legally they should.

Marcon

https://forums.moneysavingexpert.com/discussion/6666183/sipp-help-please

If you're planning to add £50K a year, then getting some proper (paid for) financial advice from an IFA would make a lot of sense. Your employer is legally required to have a pension scheme for auto-enrolment purposes, but if they're willing to pay to a SIPP of your choice then maybe now isn't the moment to point that out to them! Few employers would give you the luxury of choice…

Gobigorgohome

they do just for the basic contribution that they legally have to add but don’t allow any salary sacrifice in that

Marcon

https://forums.moneysavingexpert.com/discussion/comment/81981399#Comment_81981399

They obviously like making work for themselves! As above - suggest you get some advice to ensure you pick the right SIPP and the right investments for your objectives.

dunstonh

Most individual schemes cannot handle auto-enrolment contributions and do not comply with AE regs.

The employer will have no access to the pension contribution software. They won't be able to key in the amounts each time you pay. You would be required to key it in every time the amount changes. Employer payer forms would be needed each time.

The employer is making life difficult for both of you and putting themselves at risk.

Albermarle

For sure some employers do not operate salary sacrifice for employee contributions- it is their choice.

However there are two other ways that employees can make contributions to their workplace pension. Either via;

Net Pay - A confusing term that actually means contributions come out before tax is applied.

Relief at Source - Contributions come out of taxed pay.

I am guessing that the employer is operating one of these methods for employee contributions?

Gobigorgohome

https://forums.moneysavingexpert.com/discussion/comment/81981471#Comment_81981471

yes it comes out of net pay

barnstar2077

Compare the charges and fund choice for both of the SIPPs you are thinkng about using.

Assuming you have a way to go before you want to access the pot, then use a globally diversified fund, like the ones from Vanguard, HSBC etc. Don't worry too much about it going up and down a bit, keep paying in every month and reasses when you are five to ten years off from retirement.

I use Vanguard's FTSE Global All Cap index fund, but others are available.

Paid for advice maybe worth it, but not necessary just to set up a SIPP.

Veloflyer

To answer the original post perhaps - I am with Bell and HL for SIPPs. I think Bell offers good value for money and has an extensive fund choice. HL is similar, but perhaps slightly higher fees in general. Both online dealings are pretty simple and intuitive. On the rare occasions I have spoken over the 'phone, Bell at least have been prompt and informative.

My view is that it isn't so much the provider, rather the investments you choose. Therein is a whole different story which depends on your circumstances, attitude to risk, age, etc. I tend towards global trackers for equities.

Albermarle

The company does not operate a salary sacrifice scheme, but they offer a workplace pension that you can contribute via the Net Pay route. So far all makes sense.

But they will operate a salary sacrifice scheme just for you, and have the hassle of paying into a different pension ( again just for you). Sounds a bit odd ??