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  1. #1

    Nervous Newbie


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    Lightbulb Pension Setup Fee £500??

    I am a Contractor with a Limited Company, I feel that I am missing out on "no brainer" tax savings as I don't have a pension set up via my company. I have contacted my financial advisor department of my accounting company and they have explained the ins & outs of the Pension Plan they are providing but they charge a one-off £500 fee to setup in addition to an Annual Management Charge of 0.65%.

    Is this normal?? Can anyone advise if this is competitive or even recommend a better provider??
    I have looked at NEST as an alternative (trust rather than shareholders), which do not charge a setup fee? Any experience/advice??

    Many thanks in advance!!

  2. #2

    Nervous Newbie


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    That seems quite normal. I shopped around recently and ended up with someone charging the same as that. There were some that were charging 3% set up cost and 1% per annum. I guess it also depends how much you want to invest and some IFAs will negotiate.

  3. #3

    Faqqed Off

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    I don't know what the management charges are off the top of my head, but my IFA didn't charge anything to set up my pension plan.
    Best Forum Advisor, 2014
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    Nervous Newbie


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    Quote Originally Posted by TheFaQQer View Post
    I don't know what the management charges are off the top of my head, but my IFA didn't charge anything to set up my pension plan.

    Thanks for reply! Any recommendations?

  5. #5

    Still gathering requirements...


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    Default Why not do it yourself

    You can open a SIPP yourself with contributions from your company on Hargreaves Lansdown website. It took me all of 5 minutes to fill the form in.
    Stick your money in a Vanguard Lifestrategy fund and forget about it - you'll have a low cost fund with automatic asset allocation which will probably outperform anything an IFA can do.

    If your pot grows substantially large you can then transfer to a even lower cost platform like iii but hargreaves lansdown will make everything easy for you initially.

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    Nervous Newbie


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    Thanks for the info Dingdong!! Much appreciated!!

    Im assuming you did this through your company allowing company contributions plus personal contributions?

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    Fingers like lightning

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    I set up a private pension with Standard Life and pay from my direct from my business account.
    And the good thing is I can change how much or little I put in depending on whether in contract or on the bench.

    Standard Life UK - pensions, insurance, savings and investments

  8. #8

    I live on CUK

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    Quote Originally Posted by Nattybongo View Post
    Thanks for the info Dingdong!! Much appreciated!!

    Im assuming you did this through your company allowing company contributions plus personal contributions?
    Yes you can make company and personal contributions to the SIPP.

    You need to inform them you are making a company contribution.
    "You’re just a bad memory who doesn’t know when to go away" JR

  9. #9

    Still gathering requirements...


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    I've got a direct debit each month with Hargreaves Lansdown from my company bank account where most of my contributions come from.

    I've then make a few personal contributions directly on their website using a debit card to take advantage of higher rate tax relief.

    Everything has been extremely easy to manage - their website is very easy to use.

  10. #10

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    https://www.youinvest.co.uk/

    These lot were the cheapest SIPP ( and ISA ), free when I took it out for directly held shares, but some management fees now and I haven't checked the rivals since. The trading platform is good, no complaints in 7 or 8 years with them.

    https://www.youinvest.co.uk/sipp/charges-and-rates - Just had a look, free setup, and custody charge 0.2%, max £50 a Qtr. You have the cost of buying your funds and shares on top of that.
    Last edited by rootsnall; 11th May 2015 at 14:10.

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