Still gathering requirements...
Contractor SIPP (advice for 2013)
I'm the sole Director of my Ltd Company (an Oil & Gas contractor) in my early 30's looking to set-up a pension. This will be paid from my Ltd Company to save on 20% Corporation Tax.
I wish to save approx. £600/ month but also have the flexibility to change the payment amount should my contract situation change for the better or worse in the future.
I've been contracting now in the Oil & Gas sector for 12 months, previously being a staff employee for circa 7 years.
I've recently received a quote from a Contractor IFA specialist to set up a pension plan, and the result recommended an Aegon Retirement Choices plan (SIPP).
The followings set-up/ ongoing costs were quoted for the Aegon SIPP:
(1) The IFA stated that they have negotiated a substantial discount from the standard terms on my behalf. This will be a flat charge of 0.4%
(2) They will receive 1% of the fund per annum, which is paid monthly, for their active management service. This covers the cost of on-going servicing, implementation of our quarterly investment committee decisions and rebalancing of your funds, annual risk profiling and review.
(3) The total TER (Total Expense Ratio) which would apply to my funds is 0.19%, plus their ongoing 1% for participation in the Active Management Service, as mentioned in point (2).
(4) A one-off fee of £750 to set up the pension.
Being a newbie to SIPP/ pensions, and after reading the previous SIPP related posts on this forum, I often see the likes of Hargreaves Lansdown (HL), Alliance Trust and SIPPdeal etc. recommended again and again….
I wondered how overall costs of the above Aegon SIPP compare to these.. Would I be much better off with setting up my own "DIY" pension with HL etc, and cutting out the IFA???
Any advice would be very much appreciated.
Last edited by jlo1983; 2nd August 2013 at 11:24.