My research has made me understand a bit more about SIPPS. Neither of my pension fund holders will transfer to one of their products due to the non-UK resident thing.
Can you expand on what all that means? I’m guessing it’s a one off charge of 0,25% of the total funds invested, an annual £125 fee, a variable (depending on fund size?) one-off advice fee of 1%-5%, & a presumably optional ongoing advice fee of 1% of the fund (oris that withdrawals).
This means there aren’t investments available that advisers can use to earn commissions from either up front, trail commissions and exit fees. Sometimes advisers use different share classes to generate more commissions. The platform doesn’t allow any of these type of investments.
OK, makes sense. Is it always based on the initial pension value, or is it the size of the remaining funds i.e. if one draws down a large amount one year you’d reduce this particular annual charge?
Ah, great. A more honest approach.
Thank you so much for all this advice - it’s really helping me understand things.
No it’s based on the value of the pension not the amount invested. So if it grows to 500k the cost is 0.25%. It’s taken 0.0625% of the value every QTR.
I, for one, would be very interested in more info.
Other questions that occur (having trawled many websites, some of which fail the competence test ), are…
Does the product you are talking about charge for withdrawals? Your original charges list implies that it doesn’t.
Can you set up automated withdrawals?
Is there a minimum investment required?
In my case I could have payments made to a UK bank, in sterling. Does that help with charges at all?
Thanks again for your ongoing advice. If you’d rather I didn’t put all this in the public domain then please tell me. At this stage I’m guessing that others may find this conversation interesting.
It’s great as if you have questions it’s likely that others might have the same ones so it’s really helpful… happy to have info out there. Allows people to make informed decisions without having to talk to an adviser…: I think in the main financial services haven’t got the best name after all the Uk scandals over the years.
This is where things fall apart - my funds total approx. £35,000. I could reluctantly move other savings to make up the minimum. Could I then withdraw the extra & put it back where it came from i.e. does the £50K minimum only apply to the initial investment?
That makes sense, & is covered in threads elsewhere on this site.
That’s very refreshing to hear. Previous experience has made me very averse to engaging directly with anyone offering pretty much anything. I like to see the facts in front of me & take my time with any decision, without the pressure of a salesperson. I suspect this view is shared by many.
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