Vanguard to launch UK's cheapest SIPP

Vanguard to launch UK's cheapest SIPP

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Discussion

The Leaper

Original Poster:

4,954 posts

206 months

Friday 31st January 2020
quotequote all
I gather that Vanguard intends launching the UK's cheapest SIPP early 2020. It will designed to reduce the cost and complexity of investing for retirement,

Looks like a price war for SIPPs is incoming.

R.

FredClogs

14,041 posts

161 months

Friday 31st January 2020
quotequote all
Good

JulianPH

9,917 posts

114 months

Friday 31st January 2020
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I said in an interview years ago that the concept of charging for a SIPP would eventually be as alien as the concept of charging for an ISA.


deggles

616 posts

202 months

Friday 31st January 2020
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It's been mooted for a while, hopefully not far off now. And yes, hopefully will push competitors' platform fees down a little smile

BlackG7R

683 posts

181 months

Friday 31st January 2020
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Can't wait. I'll be transferring as much out of my Hargreaves Lansdown SIPP as I can without it being shut down. (Unfortunately my company will only pay contributions to HL) Hopefully HL will wake up to the fact that they are taking the p1ss on their platform charges, which in some cases is double what I'm paying for the actual funds !!

5pen

1,891 posts

206 months

Wednesday 19th February 2020
quotequote all
Interesting.

0.15% per year capped at £375.

From the link;
"The cap applies across all accounts in an investor's name on the Vanguard Personal Investor platform, including the SIPP, ISA, and general account."

JulianPH

9,917 posts

114 months

Wednesday 19th February 2020
quotequote all
Today might be a good day to short HL! hehe


K12beano

20,854 posts

275 months

Wednesday 19th February 2020
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5pen said:
Interesting.

0.15% per year capped at £375.
That's misleading - next to the big figures it doesn't say that 0.15% is payable every year.....



forest172

687 posts

206 months

Wednesday 19th February 2020
quotequote all
you have to open a new account with a new username and password for your SIPP

Would have been easier if all under one account. Obviously it can`t be

webstercivet

457 posts

74 months

Wednesday 19th February 2020
quotequote all
forest172 said:
you have to open a new account with a new username and password for your SIPP

Would have been easier if all under one account. Obviously it can`t be
Do you? If you log in, click My Accounts, and Open New Account it doesn't seem like you need a new username/password. (With the caveat that I haven't fully completed the process yet.)

JulianPH

9,917 posts

114 months

Wednesday 19th February 2020
quotequote all
K12beano said:
5pen said:
Interesting.

0.15% per year capped at £375.
That's misleading - next to the big figures it doesn't say that 0.15% is payable every year.....


You also have to factor in the fund costs and transaction charges, which averages 0.41% for LifeStrategy and 0.44% for Retirement funds.

Still excellent value, but I agree, the big 0.15% figure for the SIPP is quite misleading (edited to add - particularly given these additional fees are not capped at all).





Edited by JulianPH on Wednesday 19th February 12:01

JamesD74

231 posts

175 months

Wednesday 19th February 2020
quotequote all
forest172 said:
you have to open a new account with a new username and password for your SIPP

Would have been easier if all under one account. Obviously it can`t be
No you don't. I have my ISA with Vanguard and have just opened/transferred into a new Vanguard SIPP and it is all under the same existing account.

Both show up on my homepage under my portfolio. Was very easy to do.

webstercivet

457 posts

74 months

Wednesday 19th February 2020
quotequote all
JulianPH said:
You also have to factor in the fund costs and transaction charges, which averages 0.41% for LifeStrategy and 0.44% for Retirement funds.

Still excellent value, but I agree, the big 0.15% figure for the SIPP is quite misleading.
To be clear, the 0.41-0.44% you quote is the total cost including the 0.15% platform fee. The fund charges are 0.22-0.24% and the transaction costs are 0.02-0.06%.

Source: https://www.vanguardinvestor.co.uk/content/documen...

Mr Pointy

11,223 posts

159 months

Wednesday 19th February 2020
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Asking for a friend: he has a SIPP with HL which contains a number of funds, one of which is LifeStrategy 80. If he opens a SIPP with Vanguard is there a section in the transfer process which would allow him to do an in-specie transfer of just the LS funds & leave the other funds with HL? Can you define which funds get moved over - I know if you transfer them all they will move the LS as in-specie & cash out the others but can you specify which funds are moved?

i4got

5,655 posts

78 months

Wednesday 19th February 2020
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So for an ETF (eg VWRL) in a SIPP which exceeds the cap on management charges, HL is still cheaper then Vanguard direct?

£200 cap plus 0.22 against £375 cap plus 0.22 ?



forest172

687 posts

206 months

Wednesday 19th February 2020
quotequote all
JamesD74 said:
No you don't. I have my ISA with Vanguard and have just opened/transferred into a new Vanguard SIPP and it is all under the same existing account.

Both show up on my homepage under my portfolio. Was very easy to do.
strange I tried to do that when I was logged in and it told me to create a new username

sorted:- So while logged in it`s important you choose open new account on left hand side. I was logged in and tried to do it from the top menus under "what we offer" then it tries to open you a new account completely

Edited by forest172 on Wednesday 19th February 12:58

JulianPH

9,917 posts

114 months

Wednesday 19th February 2020
quotequote all
webstercivet said:
JulianPH said:
You also have to factor in the fund costs and transaction charges, which averages 0.41% for LifeStrategy and 0.44% for Retirement funds.

Still excellent value, but I agree, the big 0.15% figure for the SIPP is quite misleading.
To be clear, the 0.41-0.44% you quote is the total cost including the 0.15% platform fee. The fund charges are 0.22-0.24% and the transaction costs are 0.02-0.06%.

Source: https://www.vanguardinvestor.co.uk/content/documen...
Sorry I thought I had made it clear I was referring to the total costs, reading back I agree this was not as clear as intended.

I still stand by my two points though. This is still exceptional value, but it is not the headline 0.15% a year when the other costs are factored in.


K12beano

20,854 posts

275 months

Wednesday 19th February 2020
quotequote all
And, of course, ^^^ this shows the problem (absolutely NO criticism Julian) ....

....in trying to appeal to a mass market, it’s never really obvious and clear to the new punter what they are buying and what they are paying ...

(I don’t have an answer, just that this is what puts too many people off getting stuck in...)

webstercivet

457 posts

74 months

Wednesday 19th February 2020
quotequote all
JulianPH said:
Sorry I thought I had made it clear I was referring to the total costs, reading back I agree this was not as clear as intended.

I still stand by my two points though. This is still exceptional value, but it is not the headline 0.15% a year when the other costs are factored in.
No worries! Agree it's good value.