Vanguard SIPP at last

[Mazinbrum]

I had an email today about the much anticipated Vanguard SIPP.
It’s starting early next year with an account fee of 0.15% capped at £375. Drawdown is launching later on in the 20-21 tax year.

[i4got]

Interesting.

It seems though if primarily using an ETF like VWRL then with the HL cap of £200pa against Vanguards £375 and with the same 0.22 % annual charge on both platforms, then you're as well staying with HL? (Assuming you are over the cap)

For funds looks like a pretty substantial financial reason to move from HL.

[AllyM]

i4got said:

Interesting.

It seems though if primarily using an ETF like VWRL then with the HL cap of £200pa against Vanguards £375 and with the same 0.22 % annual charge on both platforms, then you're as well staying with HL? (Assuming you are over the cap)

For funds looks like a pretty substantial financial reason to move from HL.

Or use fidelity and cap it at £45 per annum.

[BlackG7R]

This is great news.

Unfortunately I'm stuck with HL, as that the platform my company pays it's pension contributions to. But it may push HL to become a bit more competitive.

I really resent the fact that I'm paying HL double in platform fees than I am paying for the Vanguard funds I have within my SIPP.

[cloud_dog]

If you really want move you could check if you could undertake a partial transfer, see if the scheme / HL will allow it.

Slightly different from you but I'm still in DB (final salary) scheme and I am making additional payments in to my AVC fund (I do this because I benefit from Salary Sacrifice) but every couple of years I did a partial transfer in to my Fidelity SIPP.

[BlackG7R]

cloud_dog said:

If you really want move you could check if you could undertake a partial transfer, see if the scheme / HL will allow it.

Slightly different from you but I'm still in DB (final salary) scheme and I am making additional payments in to my AVC fund (I do this because I benefit from Salary Sacrifice) but every couple of years I did a partial transfer in to my Fidelity SIPP.

Thanks, I hadn't considered that might be a possibility.

But I am also asking the trustees of our company pension scheme to consider, either adding Vanguard as an option for our contributions, or dumping HL altogether, as I think this would give most if not all of our employees a better outcome.

[Cheib]

I’d say that’s bad news for HL...even if you can’t move yourself I would think they will be forced to respond as they have to attract new business.

[anonymous-user]

This is a very interesting development, to the extent I am going to evaluate moving my pension to the Vanguard SIPP.

Those charges are tiny, and whilst there are some limitations, it seems to offer excellent value for money.

[Cheib]

For me the most important thing alongside cost is what the customer service is like and how competent they are at dealing with slightly unusual requests. I hold a share in my SIPP/ISA, company Is in the process of placing some shares to existing shareholders....sent the letter to the platform I use....within 48 hours company had all the documents they needed and all was good. I confirmed the same with the CFO who said I was luckily using the provider that in their experience handles these kind of transaction very well....they’ve had nightmares with some other Platform providers.

[JulianPH]

Cheib said:

For me the most important thing alongside cost is what the customer service is like and how competent they are at dealing with slightly unusual requests. I hold a share in my SIPP/ISA, company Is in the process of placing some shares to existing shareholders....sent the letter to the platform I use....within 48 hours company had all the documents they needed and all was good. I confirmed the same with the CFO who said I was luckily using the provider that in their experience handles these kind of transaction very well....they’ve had nightmares with some other Platform providers.

I think this is a very important comment.

I welcome Vanguard's launch of this at some point next year, but cost is only one element and service is very important.

Reading reports, the Vanguard SIPP will not allow for income drawdown when launched (although they will allow you to transfer for free to a provider that does offer this).

From experience, facilitating income drawdown is not a light task, but with their resources I am sure they can build the technology and attract the experienced human resource necessary to deliver this.

I really do believe though that developments like this are good for the investment industry in the UK and it has given me food for thought on whether I could offer a lower cost "no frills" offering that could compete with this (for people who didn't want the additional services/human touch).

[BlackG7R]

Can't see this being a problem with Vanguard they've been in the investment game a long time, and have been growing all of that time, upto about $5 trillion under management now I believe. So they be doing something right. People get very edgy when it's their money involved, especially life savings. I imagine they are well aware of that. Just listening to one 1hr interview with their founder John Bogle (who sadly died this year) was enough for me to want to invest with them.

[Derek Chevalier]

BlackG7R said:

Can't see this being a problem with Vanguard they've been in the investment game a long time, and have been growing all of that time, upto about $5 trillion under management now I believe. So they be doing something right. People get very edgy when it's their money involved, especially life savings. I imagine they are well aware of that. Just listening to one 1hr interview with their founder John Bogle (who sadly died this year) was enough for me to want to invest with them.

There's a great article (unfortunately behind the paywall) on Bogle

https://www.thetimes.co.uk/article/the-unsung-hero...

They've made an astonishing difference to the lives of many.

[BlackG7R]

Derek Chevalier said:

There's a great article (unfortunately behind the paywall) on Bogle

https://www.thetimes.co.uk/article/the-unsung-hero...

They've made an astonishing difference to the lives of many.

Saint John Bogle, as the Bogle heads call him.

[chip*]

BlackG7R said:

Can't see this being a problem with Vanguard they've been in the investment game a long time, and have been growing all of that time, upto about $5 trillion under management now I believe. So they be doing something right. People get very edgy when it's their money involved, especially life savings. I imagine they are well aware of that. Just listening to one 1hr interview with their founder John Bogle (who sadly died this year) was enough for me to want to invest with them.

$5 trillion! :O

Big fan of Vanguard myself, and really like the clear presentation and transparency on investment data for the potential investors e.g. Lifestrategy

https://www.vanguardinvestor.co.uk/investing-expla...

Definitely one to consider in 2020 for me.

[outnumbered]

Not sure if there's been another thread on this in the meantime, but as of Autumn 2020, Vanguard are now offering Drawdown on their SIPP.

I need to transfer my pension from a Standard Life Group scheme that doesn't support drawdown into a SIPP, and since it's all currently in a bunch of Vanguard funds anyway, this looks extremely attractive from a fees perspective.