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Bronson

SIPP Guidance / Auto Enrolment

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Hi,

Can anyone in the HPC Hive recommend some good reading or resources regarding SIPP. I've churned through the easily found stuff online but wondered if anyone had and other documentation or websites they have found particularly useful? It's mainly guidance and knowledge on the admin with my employer i'm after...

Our work is also auto-enrolling come April and we have a seminar from their chosen pension provider (https://www.architecture.com/RIBA/Professionalsupport/TheRIBAPension/TheRIBAPension.aspx) - I'm aware that having a SIPP allows you to opt out, but again any words of wisdom on this would be excellent.

Ta.

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23 hours ago, Bronson said:

Hi,

Can anyone in the HPC Hive recommend some good reading or resources regarding SIPP. I've churned through the easily found stuff online but wondered if anyone had and other documentation or websites they have found particularly useful? It's mainly guidance and knowledge on the admin with my employer i'm after...

Our work is also auto-enrolling come April and we have a seminar from their chosen pension provider (https://www.architecture.com/RIBA/Professionalsupport/TheRIBAPension/TheRIBAPension.aspx) - I'm aware that having a SIPP allows you to opt out, but again any words of wisdom on this would be excellent.

Ta.

I say all the below as someone who is not a pensions expert or financial adviser.

First question I'd ask myself is by opting in to the workplace scheme what benefits does it give me?  For example my employer matches contributions up to a certain %, gives me 10% of the 13.8% employers NI that they save and by allowing me to salary sacrifice I also save on some employees NI.  Do the maths on that and it is very beneficial.

Second question is what are the negatives of the workplace scheme?  My employer uses an old school insurance company for the DC scheme administration.  Their fund selection is actually pretty diverse but the big negative is that the expenses are high.

What do I do? I maximise the first and minimise the second by being enrolled in my employers scheme (even though I have SIPP's elsewhere) but then at periodic intervals I complete a partial transfer to my SIPP.

Just an example and your scheme might have different pro's and con's but hopefully gives an example of how a bit of creative thinking can make a big difference.

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Really helpful WICAO, thanks - that's given me enough to go and get my head around some questions for my employer. There's been no mention of salary sacrifice as of yet or if they are looking to better there minimum contributions.

The particular pension fund are flaunting a AMC of 0.44%, which if I'm honest, means relatively little to me at this stage! They claim it to be low though. 

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1 hour ago, Bronson said:

Really helpful WICAO, thanks - that's given me enough to go and get my head around some questions for my employer. There's been no mention of salary sacrifice as of yet or if they are looking to better there minimum contributions.

The particular pension fund are flaunting a AMC of 0.44%, which if I'm honest, means relatively little to me at this stage! They claim it to be low though. 

The AMC will not be all the charges.  To get closer to the real charges you'll be looking for something called a TER or more likely an OCF.  When comparing to what you could run a SIPP for make sure you include trading cost estimates, the wrapper cost (that's the SIPP itself) and the product cost (that's the ETF/OEIC).

If it helps my total portfolio expenses are currently running at 0.24% all in.

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On 1/2/2017 at 8:44 PM, wish I could afford one said:

The AMC will not be all the charges.  To get closer to the real charges you'll be looking for something called a TER or more likely an OCF.  When comparing to what you could run a SIPP for make sure you include trading cost estimates, the wrapper cost (that's the SIPP itself) and the product cost (that's the ETF/OEIC).

If it helps my total portfolio expenses are currently running at 0.24% all in.

WICAO - late I know but thanks for the help! Since the last posts I have moved on from my previous job with a view to setting up my own company. 

FWIW my previous employer shrunk inside themselves when I asked about the potential for salary sacrifice, and the pension advice avoided my questioning of further charges and costs. This was in front of the rest of the office. 

I feel much happier with it in my own hands!

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On 12/30/2016 at 0:28 PM, wish I could afford one said:

What do I do? I maximise the first and minimise the second by being enrolled in my employers scheme (even though I have SIPP's elsewhere) but then at periodic intervals I complete a partial transfer to my SIPP.

Wow. This is some good information to know. I might just start doing the same.

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I have just been looking at this stuff myself it's 1% from employer and employee where I work and is mandated by the government to rise 5% employee and 3% employer by 2019.

My dad was just moaning that his small pension is being taxed, so he might as well not bothered as it's basically the financial equivalent of your state pension being taxed. Something to mull over really.

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On 29/12/2016 at 0:29 PM, Bronson said:

Our work is also auto-enrolling come April and we have a seminar from their chosen pension provider (https://www.architecture.com/RIBA/Professionalsupport/TheRIBAPension/TheRIBAPension.aspx) - I'm aware that having a SIPP allows you to opt out, but again any words of wisdom on this would be excellent.

You can opt out even without having a SIPP.

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On 30 December 2016 at 12:28 PM, wish I could afford one said:

I say all the below as someone who is not a pensions expert or financial adviser.

First question I'd ask myself is by opting in to the workplace scheme what benefits does it give me?  For example my employer matches contributions up to a certain %, gives me 10% of the 13.8% employers NI that they save and by allowing me to salary sacrifice I also save on some employees NI.  Do the maths on that and it is very beneficial.

Second question is what are the negatives of the workplace scheme?  My employer uses an old school insurance company for the DC scheme administration.  Their fund selection is actually pretty diverse but the big negative is that the expenses are high.

What do I do? I maximise the first and minimise the second by being enrolled in my employers scheme (even though I have SIPP's elsewhere) but then at periodic intervals I complete a partial transfer to my SIPP.

Just an example and your scheme might have different pro's and con's but hopefully gives an example of how a bit of creative thinking can make a big difference.

This was also useful to me, thank you WICAO. I'm fortunate to be on a final salary scheme (60ths) that is still active for contributions (but not new entrants).

As I am in my mid-thirties I'm not expecting this final salary pension to be active by the time I retire so have been thinking about whether to make additional arrangements. My company offers an AVC scheme where you can select various funds to invest in.

I was wondering if you know if there are any benefits to setting up a SIPP versus going with an AVC? From what I've read I believe both have the same tax advantages. A positive for the SIPP would be a wider choice of investments, whilst a positive for an AVC would be no admin issues with setting up a SIPP with your employer.

Any pointers or corrections to my logic (or lack of!) much appreciated :-)

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17 hours ago, Rhaegal said:

This was also useful to me, thank you WICAO. I'm fortunate to be on a final salary scheme (60ths) that is still active for contributions (but not new entrants).

As I am in my mid-thirties I'm not expecting this final salary pension to be active by the time I retire so have been thinking about whether to make additional arrangements. My company offers an AVC scheme where you can select various funds to invest in.

I was wondering if you know if there are any benefits to setting up a SIPP versus going with an AVC? From what I've read I believe both have the same tax advantages. A positive for the SIPP would be a wider choice of investments, whilst a positive for an AVC would be no admin issues with setting up a SIPP with your employer.

Any pointers or corrections to my logic (or lack of!) much appreciated :-)

Sorry I don't think I can help Rhaegal.  I've never been fortunate enough to have a DB pension so have never taken the time to learn much about them.

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9 hours ago, wish I could afford one said:

Sorry I don't think I can help Rhaegal.  I've never been fortunate enough to have a DB pension so have never taken the time to learn much about them.

No worries WICAO, thank you for taking the time to respond

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