Employer contributions to SIPP
Discussion
Im new to all this SIPP thing.... have currently 2 small existing pensions with different companies, and due to being sold out Im now going to get a 3rd with another company. Its getting harder to keep track of what is going on with them, and they've been largely ignored over the last 6 months. If I open a SIPP with HL (use them already for share/ISA dealing), can I get my new employer to put contributions in, in the same way as if it were their own pension? For example, if I pay in 2%, they contribute 3%. Also, how difficult is it to transfer my existing pensions to a SIPP?
First thing is probably to get details of the existing pensions, but what then?
First thing is probably to get details of the existing pensions, but what then?
Why open an expensive SIPP? If you already have two small pots it implies that you're not particularly hands on to the point you manage them yourself. If your new employer's scheme is decent, consider transferring the existing in. Or, maintain a semblance of investment redundancy for a number of reasons and keep them completely separate. There are pros and cons to both approaches - cost/trivial pot/FSCS/unified strategy/less paperwork/diversified approach etc.
But, my default setting to you, at outset, would be to steer clear of a SIPP unless there were extenuating reasons to justify it. If you put expensive funds into an expensive pension, a) is it justifiable and b) is it a bit like making a short journey to pick up Fortnum and Mason's milk from the village post office (if you still have one!) in your Ferrari. If you put cheap trackers into a SIPP, why not put them in a cheap pension wrapper instead?
But, my default setting to you, at outset, would be to steer clear of a SIPP unless there were extenuating reasons to justify it. If you put expensive funds into an expensive pension, a) is it justifiable and b) is it a bit like making a short journey to pick up Fortnum and Mason's milk from the village post office (if you still have one!) in your Ferrari. If you put cheap trackers into a SIPP, why not put them in a cheap pension wrapper instead?
The thing is, do you *want* to manage it? I was researching passive funds for a client last night and middle of the road funds, over the past few years have returned more than decently. Ask yourself, whT do you want your fund to make, year on year - then, match that with your attitude for risk and loss. If you want say, 6%, would you be happy sweating it at night to have a 30% chance of making 6.6%? Identify what you want, what your objectives are and reverse engineer from that.
I suspect that many people now associate SIPP as a generic term for a pension - if you don't know funds, if you don't want to sustain larger than necesssary costs, if your new employer's scheme is an ok one, then consider transferring into it. Again thoug, there are pros and cons to doing that. The biggest single truism though, and one that I set my stall by when working with clients, is that the first and most effective way to make money, is not to lose money. SIPPs cost. That's not to say that cheapest is best or that cost equals waste, but you have to understand the nature of that particular relationship first and foremost.
Don't hesitate to message me if you want a quick steer. I can't advise you because we don't have a client relationship but I'd be happy to have a quick chat on an information only basis sometime if you like. Failing that, call the Pensions Advisory Service for a good, frank chat about the pros and cons mentioned above (god knows, I subsidised it enough last year
).
Edit: And talking of pensions and various levies, SIPP have been used far too indiscriminately in my opinion.
http://t.co/60i155Rn1f
I suspect that many people now associate SIPP as a generic term for a pension - if you don't know funds, if you don't want to sustain larger than necesssary costs, if your new employer's scheme is an ok one, then consider transferring into it. Again thoug, there are pros and cons to doing that. The biggest single truism though, and one that I set my stall by when working with clients, is that the first and most effective way to make money, is not to lose money. SIPPs cost. That's not to say that cheapest is best or that cost equals waste, but you have to understand the nature of that particular relationship first and foremost.
Don't hesitate to message me if you want a quick steer. I can't advise you because we don't have a client relationship but I'd be happy to have a quick chat on an information only basis sometime if you like. Failing that, call the Pensions Advisory Service for a good, frank chat about the pros and cons mentioned above (god knows, I subsidised it enough last year
).Edit: And talking of pensions and various levies, SIPP have been used far too indiscriminately in my opinion.
http://t.co/60i155Rn1f
Edited by Ginge R on Tuesday 20th January 09:54
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