SIPPs - A friend who works for Friends Provident mentions that from he understanding at work it is only worthwhile if you have a pension worth £ 100 K already. Is this true?
Worthwhile from around 15k-20k.To some extent it depends on how you invest the money.With smaller amounts, a SIPP works better with a lump sump from transferred-in pensions than with regular contributions.
Your friend may be a bit confused, because in the past, SIPPs were mainly used by people who wanted to put their pension funds into I***** D*******, rather than give up their capital to buy an A******.In the olden days, this was only advised for funds worth over 100k.
Recently, things have changed
It is not anybody's capital
mmm has mortailty drag suddenly disappeared?
Please explain how, for most people, a pension fund of £15,000.00 to £20,000.00 could be more at home in a SIPP than in a top-drawer Stakeholder Plan?
Edinvestor says.."rather than give up their capital.."
What do you mean by "their capital"? It is not anybody's capital - it is their pension fund........a fund accumulated with the intention of generating an income to replace earnings.
See the effect of charges on pensions here:www.fsa.gov.uk/tables
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