Which Pension/SIPP provider are you with, and why?
Discussion
RaymondVanDerDon said:
I have just checked their website in relation to SIPP charges. http://www.hl.co.uk/pensions/sipp/charges-and-inte...
Annual management charges are 0.25% for FUNDS valued at £250k to £1 million - which I think the OP must be referring to.
Annual management charges for CASH holdings = no charge.
Annual management charges for SHARES, investment trusts, ETFs, gilts & bonds is 0.45% capped at £200, which is applicable to me.
As 98elise points out - you have massively understated the cost here.Annual management charges are 0.25% for FUNDS valued at £250k to £1 million - which I think the OP must be referring to.
Annual management charges for CASH holdings = no charge.
Annual management charges for SHARES, investment trusts, ETFs, gilts & bonds is 0.45% capped at £200, which is applicable to me.
The fees are TIERED.
So it is 0.45% for the FIRST £250k and ONLY THEN 0.25% as you go from £250k to £1m.
Which means its £900 a year if you have £200k of funds with them, for example.
As it happens I still use HL because I found their range of products on offer (e.g. foreign shares and ETFs) very wide and a great platform.
For the missus I use Interactive Investor who I chose purely on grounds of cost.
They charge £96 a year for the SIPP admin and then you need a trading account with them (access to all three of regular trading, ISA and SIPP) which is £20 a quarter and gives you two free trades each time (which are normally £10 a trade).
http://www.iii.co.uk/our-services/our-accounts/cha...
She has a SIPP and her ISA with them.
They are working on improving their platform!
Jockman said:
Ozzie Osmond said:
98elise said:
I've not invested in pensions in the past 5 years so I can use the previous 3 years carry forward allowance.
Yes, so long as you have sufficient earned income this year to absorb them. Unearned income doesn't count.I'm with Interactive Investor. Never had a problem. Good service, and cheap. Gets expensive if you switch funds often- it's £10 a trade over your two trades per quarter allowance. But I don't trade my pension much so that's fine. Isas are with HL because I trade them much more frequently.
98elise said:
Jockman said:
Ozzie Osmond said:
98elise said:
I've not invested in pensions in the past 5 years so I can use the previous 3 years carry forward allowance.
Yes, so long as you have sufficient earned income this year to absorb them. Unearned income doesn't count.walm said:
As 98elise points out - you have massively understated the cost here.
The fees are TIERED.
So it is 0.45% for the FIRST £250k and ONLY THEN 0.25% as you go from £250k to £1m.
Which means its £900 a year if you have £200k of funds with them, for example.
I think saying I've "massively understated the cost" is unfair as I posted the 0.25% fee as quoted on the HL website after the OP posted (see post 6) what the fee was for a £250k pot - so I put that I assumed he was looking at charges for a £250k pot (note I was specific by saying £250k to £1 million). This is competitive when compared to other SIPP providers. The fees are TIERED.
So it is 0.45% for the FIRST £250k and ONLY THEN 0.25% as you go from £250k to £1m.
Which means its £900 a year if you have £200k of funds with them, for example.
I agree with you the variety of investments they offer is superb as is their customer service IMO.
RaymondVanDerDon said:
walm said:
As 98elise points out - you have massively understated the cost here.
The fees are TIERED.
So it is 0.45% for the FIRST £250k and ONLY THEN 0.25% as you go from £250k to £1m.
Which means its £900 a year if you have £200k of funds with them, for example.
I think saying I've "massively understated the cost" is unfair as I posted the 0.25% fee as quoted on the HL website after the OP posted (see post 6) what the fee was for a £250k pot - so I put that I assumed he was looking at charges for a £250k pot (note I was specific by saying £250k to £1 million). This is competitive when compared to other SIPP providers. The fees are TIERED.
So it is 0.45% for the FIRST £250k and ONLY THEN 0.25% as you go from £250k to £1m.
Which means its £900 a year if you have £200k of funds with them, for example.
I agree with you the variety of investments they offer is superb as is their customer service IMO.
The fee is 0.45% on a £250k pot of funds. 0.25% doesn't have any relevance at all.
Yes you were specific on £250k to £1m but you were wrong again. The fee is 0.45% for the first £250k then 0.25% for anything above £250k up to £1m.
The OP was exactly right that it's over £1k for £250k (of funds) which IMHO is a rip-off.
walm said:
The fee is 0.45% on a £250k pot of funds.
Sorry if this is a daft question, but is the 0.45% fee a management fee? On top of the 0.45% do you also have fund fees or platform fees?As far as I'm aware I have 3 fees: a management fee (0.75%) then a Wrap Fee (Standard Life - can't remember how much but I think about £30/month) and then the fund fees of whatever I'm invested in. Must be a total of about 2%?
Phooey said:
walm said:
The fee is 0.45% on a £250k pot of funds.
Sorry if this is a daft question, but is the 0.45% fee a management fee? On top of the 0.45% do you also have fund fees or platform fees?As far as I'm aware I have 3 fees: a management fee (0.75%) then a Wrap Fee (Standard Life - can't remember how much but I think about £30/month) and then the fund fees of whatever I'm invested in. Must be a total of about 2%?
But my understanding is that you pay the 0.45% on any amount invested in FUNDS (up to £250k).
If you have other combinations, such as £50k in cash, £100k in regular equities and £100k in funds then you pay:
Zero on the cash.
£200 per annum max on the equities.
0.45% on the £100k in funds.
Now, clearly, the cash pays some sort of horrendously small interest.
The equities may or may not pay divs.
As for the funds, some of them pay dividends too (IIRC) and ALL of them will charge a management fee which is taken out of the value of your investment.
So say the fund invests in things which rise by 10%.... but they charge a 2% fee.
Your investment in that fund will rise just 8%.
So you SHOULDN'T see an explicit figure being paid to HL which then goes to the fund.
It's all just included in the NET value of your investments at any given moment.
At least, that is my understanding!
There is no further "platform" fee or anything, I think.
walm said:
I am not an expert on this.
But my understanding is that you pay the 0.45% on any amount invested in FUNDS (up to £250k).
If you have other combinations, such as £50k in cash, £100k in regular equities and £100k in funds then you pay:
Zero on the cash.
£200 per annum max on the equities.
0.45% on the £100k in funds.
Now, clearly, the cash pays some sort of horrendously small interest.
The equities may or may not pay divs.
As for the funds, some of them pay dividends too (IIRC) and ALL of them will charge a management fee which is taken out of the value of your investment.
So say the fund invests in things which rise by 10%.... but they charge a 2% fee.
Your investment in that fund will rise just 8%.
So you SHOULDN'T see an explicit figure being paid to HL which then goes to the fund.
It's all just included in the NET value of your investments at any given moment.
At least, that is my understanding!
There is no further "platform" fee or anything, I think.
Ok, cheers for reply. I have to admit by getting confused by all different (hidden?) charges - it's only recently that I realised I was paying 3 different charges But my understanding is that you pay the 0.45% on any amount invested in FUNDS (up to £250k).
If you have other combinations, such as £50k in cash, £100k in regular equities and £100k in funds then you pay:
Zero on the cash.
£200 per annum max on the equities.
0.45% on the £100k in funds.
Now, clearly, the cash pays some sort of horrendously small interest.
The equities may or may not pay divs.
As for the funds, some of them pay dividends too (IIRC) and ALL of them will charge a management fee which is taken out of the value of your investment.
So say the fund invests in things which rise by 10%.... but they charge a 2% fee.
Your investment in that fund will rise just 8%.
So you SHOULDN'T see an explicit figure being paid to HL which then goes to the fund.
It's all just included in the NET value of your investments at any given moment.
At least, that is my understanding!
There is no further "platform" fee or anything, I think.
. I still find statements confusing even though they are now supposed to be easier to understand 
Phooey said:
Ok, cheers for reply. I have to admit by getting confused by all different (hidden?) charges - it's only recently that I realised I was paying 3 different charges . I still find statements confusing even though they are now supposed to be easier to understand
And just when you get your head round the charges, your IFA starts to issue rebates on clean share classes....... . I still find statements confusing even though they are now supposed to be easier to understand 
I am late to this discussion, but another vote for AJ Bell Youinvest. They are a low cost provider with low charges and the web service is perfectly adequate. It won't do all things like property (for that you need a full service SIPP) but it is fine for shares and funds. If you fill out some additional paperwork, you can invest in ETFs, which I now find to be the most efficient way. Low management coasts (0.07% on my Vanguard ETFs) and no stamp duty.
Regarding HL fees it's worth repeating the point I made earlier,
Ozzie Osmond said:
If you and/or your family have other investments with HL you can beat them down to a 0.25% flat charging structure.
This compares reasonably well with Fidelity's flat 0.2% (at the level under discussion here)
It often seems to me that other companies with "cheap" headline charges also operate a detailed menu of extras so that you get hit with add-on costs every time you do anything.This compares reasonably well with Fidelity's flat 0.2% (at the level under discussion here)
After posting about pensions myself, in which I had some very useful replies including a link to a good document:
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
I went with Tilney Best Invest. They were marginally cheaper than HL. I thought I would go with HL as many on PH have good reviews, but the more I read the more I erred towards TBI.
http://www.pistonheads.com/gassing/topic.asp?h=0&a...
I went with Tilney Best Invest. They were marginally cheaper than HL. I thought I would go with HL as many on PH have good reviews, but the more I read the more I erred towards TBI.
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