Where to put a small pension pot?
Discussion
Due to being self employed or working abroad I have never really had a UK pension but after a couple of recent jobs in the UK I have a small (£23k) pension with Scottish Widows and Aviva.
I’m about to hopefully get another job in the UK with contributions of £4500 a year.
I’m 52.
I’m not really looking at this money for retirement as I have always had property as my retirement fund.
Question is what would be a high risk pension fund I could transfer this money into as a flutter?
I’m about to hopefully get another job in the UK with contributions of £4500 a year.
I’m 52.
I’m not really looking at this money for retirement as I have always had property as my retirement fund.
Question is what would be a high risk pension fund I could transfer this money into as a flutter?
One assumes that you have already filled this year's ISA allowance?
SIPP's are decent value as you get a tax uplift on the way in, but also bear in mind that you will pay tax on 75% of the pot on the way out.
ISA is, currently, tax free on the way out. But as mentioned above, we do not know what Ms Reeve, AKA Ms Scrouge has in mind for us all in October.
SIPP's are decent value as you get a tax uplift on the way in, but also bear in mind that you will pay tax on 75% of the pot on the way out.
ISA is, currently, tax free on the way out. But as mentioned above, we do not know what Ms Reeve, AKA Ms Scrouge has in mind for us all in October.
ferret50 said:
One assumes that you have already filled this year's ISA allowance?
SIPP's are decent value as you get a tax uplift on the way in, but also bear in mind that you will pay tax on 75% of the pot on the way out.
ISA is, currently, tax free on the way out. But as mentioned above, we do not know what Ms Reeve, AKA Ms Scrouge has in mind for us all in October.
The money is already in a pension so would need to be withdrawn to go into an ISA, plus the new job comes with pension contributions.SIPP's are decent value as you get a tax uplift on the way in, but also bear in mind that you will pay tax on 75% of the pot on the way out.
ISA is, currently, tax free on the way out. But as mentioned above, we do not know what Ms Reeve, AKA Ms Scrouge has in mind for us all in October.
And love the swift work OP - hope it all goes well.
Remember that fees have a compounding effect just as much as returns do.
Nothing at all wrong with Fidelity and on a smaller pot it's neither here nor there compared to not investing in the first place - but as your pot grows larger just be aware that fees can start to make a visible impact
Nothing at all wrong with Fidelity and on a smaller pot it's neither here nor there compared to not investing in the first place - but as your pot grows larger just be aware that fees can start to make a visible impact
lrdisco said:
Sorry don’t know where the double post came from above!
I’ve opened a Fidelity SIPP account and just waiting for the transfers to come through. Then I’m going to choose which fund or funds to invest in.
How many is optimal? Do I go all in on one fund or spread my pot?
For the amount you mentioned, personally would use a single global equity etf such as VEVE/HMWO/VHVG depending on preference for acc or inc. Fidelity platform fees are capped for ETF's hence my suggestion rather than OEIC funds.I’ve opened a Fidelity SIPP account and just waiting for the transfers to come through. Then I’m going to choose which fund or funds to invest in.
How many is optimal? Do I go all in on one fund or spread my pot?
- ETF suggestions above cover 'Developed markets' only, if you prefer All World (including EM) then VWRL/VWRP/FWRG are a couple of options
Edited by VR99 on Saturday 17th August 09:59
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hstewie said:
hstewie said: Remember that fees have a compounding effect just as much as returns do.
Nothing at all wrong with Fidelity and on a smaller pot it's neither here nor there compared to not investing in the first place - but as your pot grows larger just be aware that fees can start to make a visible impact
The Fidelity fees drop a big percentage amount once you go above £250k.Nothing at all wrong with Fidelity and on a smaller pot it's neither here nor there compared to not investing in the first place - but as your pot grows larger just be aware that fees can start to make a visible impact
I found them expensive below that but decent against any of the named competition above that value.
trickywoo said:
The Fidelity fees drop a big percentage amount once you go above £250k.
I found them expensive below that but decent against any of the named competition above that value.
He's only got a small pot and has already made his mind up!I found them expensive below that but decent against any of the named competition above that value.
Any recommendations for a low cost sipp for a small pot?
One of our friends is going through a divorce and needs a vehicle to hold a pension transfer following a divorce.
ferret50 said:
One assumes that you have already filled this year's ISA allowance?
SIPP's are decent value as you get a tax uplift on the way in, but also bear in mind that you will pay tax on 75% of the pot on the way out.
ISA is, currently, tax free on the way out. But as mentioned above, we do not know what Ms Reeve, AKA Ms Scrouge has in mind for us all in October.
I am not worried about paying tax on any income from the pension. My plan is to downsize, we are about to start our new build and sell our main house. May do this once more before retirement in a few years time. Tax free income. SIPP's are decent value as you get a tax uplift on the way in, but also bear in mind that you will pay tax on 75% of the pot on the way out.
ISA is, currently, tax free on the way out. But as mentioned above, we do not know what Ms Reeve, AKA Ms Scrouge has in mind for us all in October.
It does help that in the past I was a builder and my best friend is a very good builder who will do a fantastic job with me supplying materials. I still have a lot of contacts in the trades.
TownIdiot said:
He's only got a small pot and has already made his mind up!
Any recommendations for a low cost sipp for a small pot?
One of our friends is going through a divorce and needs a vehicle to hold a pension transfer following a divorce.
Take a look at AJ Bell which has a headline 0.25% platform fee on small pot, but do your own check for the other dealing/admin charges which may be applicable to your friend.Any recommendations for a low cost sipp for a small pot?
One of our friends is going through a divorce and needs a vehicle to hold a pension transfer following a divorce.
A basic low cost provider is iWeb. Not as cheap as before as they charge a quarterly fee £22.50 (£90 per annum), but everything else is chargeable, so check the dealing/ admin charges.
For example on a £50k pot, annual platform fee on AJ Bell is £125 compared to iweb at £90, but some deem the extra £35 cost worthwhile using AJ Bell for the potential better support, website...etc.
Edit to add.
Any plans to open additional accounts in the future e.g. Junior ISA/sipp? Check the providers as some are free from platform fee/low charges etc..
Are you in an accumulation or actually drawdown stage? Check the drawdown charges as they can vary, plus I would want access to a decent support time for queries etc..
Edited by chip* on Saturday 17th August 11:48
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