But partly it’s because we pay a high price for being an independent website, and if one very unlikely day Vanguard does mildly blow-up I don’t want anyone saying ‘Monevator was buy Vanguard rah-rah-rah’ without any caveats, when we have caveat-ed in the rare areas where it’s been possible to do so. The research found that the Vanguard Sipp was the lowest-cost on the market for the average British pension holder who has not yet drawn from their pension. I may have missed it but apparently, you need a minimum balance of £50k for withdrawals, but this can be across all accounts, not just your SIPP. You put in £100 say but it only costs you £ 80 if you are a basic rate tax payer. Monevator is a simply spiffing blog about making, saving, and investing money. I think you need to run a competition for the best VG followers word. Cited as the median pension in payment for a 65-69 year old. Would it take confiscatory taxes? Don’t do that though if you are still contributing to a DC pension. Would it take civil unrest? These cookies will be stored in your browser only with your consent. All rights reserved. Fidelity look interesting too (£45 cap for ITs and ETFs! I checked with VG yesterday by email and they are only taking cash….so they appear not to be able to take vanguard funds in any transfer, I can umderstand not taking other companies’ products. A friend had his broker go bust and although he managed to recover his money eventually, it was a drawn-out mess. What happens when a Bernie Madoff shows up at Vanguard, endangering both your platform and your holdings? I suppose I’m just a bit nervous about SIPPs since all the online guidance says they are for “experienced investors”! Are there any stakeholders available for less than that? The value of the pension policy will depend solely on returns from the investments, which are not affected by the employer’s financial status. Like most websites, Monevator uses cookies. Two platforms are manageable, three or more not so much IMO. But opting out of some of these cookies may affect your browsing experience. (Instructions). Once you get close to the LTA though, it is probably better to crystallise the remainder as you cannot get more than 25% of your remaining LTA when you crystallise. It is mandatory to procure user consent prior to running these cookies on your website. I’ve only had a quick look but I’ve found a couple of things that back this up: https://www.fscs.org.uk/what-we-cover/pensions/ Next year UFPLS 25% of my £40k and pop the other tax unsheltered £40k into the pension so that the following year I could take 25% of the second year’s £40k? But this does look like being an instant table-topper among the ‘percentage fee charging’ SIPP platforms. Nothing taken as advice. It just seems a lot more hassle trying to split across multiple ETFs, where a 50% split between two ETF providers would risk £40K. That’s what I am currently mulling over. Guardinstas? Best to draw from your SIPP at the lowest possible rate of tax, zero if you can use your personal allowance. My savings are purely for the future as I have an emergency fund. Thanks for reading! Crystallise (Taxed Portion) + (25% of taxed portion) each year? I would share Tony’s concern and it’s one of the things that makes me a bit hesitant about switching from a stakeholder to a SIPP. So as rules currently stand, while still working, am I better off crystallising £80k of my pension each year so I can pop £20k into an ISA to take advantage of being able to draw a tax-free income? So on the face of it my HL SIPP compares well with the VG SIPP proposal in that there are no drawdown charges and fees capped at £200 – but HL may turn out to be more expensive due to the requirement of the additional drawdown account with another 0.45% platform charge on ETFs up to the £200 cap (unless I just sell it all to cash in the crystalised part maybe). Really glad to hear this update, and I too hope to transfer a SIPP over from HL, though cash only transfers would be a worry (especially if, as others have experienced with other providers, the transfer ended up taking months). I do think it’s an issue one needs to consider once your portfolio is of reasonable size. @Matthew, how do costs and choice of investments of your company pension compare with Vanguard? Well I’m likely in! You can also subscribe without commenting. It is an either/or scenario for me as I am on a low income. Still, the collapse in share dealing commission in the US recently gives a good example of how quickly costs can fall if everyone gets religion. , https://www.bustle.com/articles/94986-what-does-stan-mean-everything-you-need-to-know-about-the-slang-term, Another Fine Mess that could have got me into : ), https://en.wikipedia.org/wiki/Another_Fine_Mess.
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