Setting up a workplace pension without excessive costs

[Fred Bloggs]

I’ve just finally got around to opening a SIPP. Cavendish does seem like the cheapest option for a new portfolio. Only 0.25% platform fee. I’m putting all of mine into a Vanguard Lifestrategy 80. That will do me until it gets to 6 figures at least, at which point I will review and get professional advice if I think I need it.

Cavendish are a good low cost choice using the Fidelity platform. Don't overlook Close Bros, they charge the same 0.25% platform fee and I find them excellent. I run three family portfolios there and one (much larger one) at Interactive Investor.

[Tiger22]

When I say simple I didn't mean the ability to choose correct funds but rather the mechanism of setting up a pension account to receive funds.

Obviously once set up there can be a huge range of funds/options that can be invested in and they all have higher or lower degrees of risk. An advisor may be handy at that point but I don't see why they are needed just to get a pension account set up.

[malvolio]

When I say simple I didn't mean the ability to choose correct funds but rather the mechanism of setting up a pension account to receive funds.

Obviously once set up there can be a huge range of funds/options that can be invested in and they all have higher or lower degrees of risk. An advisor may be handy at that point but I don't see why they are needed just to get a pension account set up.

So read the link I posted...?

[TheCyclingProgrammer]

There is another option. Have a read of this...

Expensive. There have been two options recommended so far that are only 0.25%. What does the IPSE one offer that the others don’t to justify paying 0.43%?

[Fred Bloggs]

Expensive. There have been two options recommended so far that are only 0.25%. What does the IPSE one offer that the others don’t to justify paying 0.43%?

Nothing except a kick back to your friends at IPSE.

[Fred Bloggs]

When I say simple I didn't mean the ability to choose correct funds but rather the mechanism of setting up a pension account to receive funds.

Obviously once set up there can be a huge range of funds/options that can be invested in and they all have higher or lower degrees of risk. An advisor may be handy at that point but I don't see why they are needed just to get a pension account set up.

It couldn't be simpler. Just go to the platform of your choice. Fill in the on line application form. Have NI number, debit card etc.... all at hand. Within five minutes you will have your pension account set up.

[malvolio]

Expensive. There have been two options recommended so far that are only 0.25%. What does the IPSE one offer that the others don’t to justify paying 0.43%?

I suggest you look into it properly. It's only 0.43%, no other commissions or hidden charges.

But I only offer it as a simple starter solution which is what you wanted... I didn't ask for a critique of its merits (or lack of them).

[l35kee]

I’ve just finally got around to opening a SIPP. Cavendish does seem like the cheapest option for a new portfolio. Only 0.25% platform fee. I’m putting all of mine into a Vanguard Lifestrategy 80. That will do me until it gets to 6 figures at least, at which point I will review and get professional advice if I think I need it.

This is pretty much what I've done, but with Hargraeves Lansdown as teh platform. Set up a SIPP, took minutes online. Then downloaded the form to allow for direct Company payments to be set up. Now I just pop online and my LTD can make payments directly.

Pick a Vanguard Lifestrategy fund and let it sit there is probably the simplest advice. As ever it's good to read up, recommend this over an IFA https://www.amazon.co.uk/Smarter-Inv...dp/0273785370/

[TheCyclingProgrammer]

I suggest you look into it properly. It's only 0.43%, no other commissions or hidden charges.

And the others suggested on here are only 0.25% and if you only want to invest in a passive fund there's no other charges besides the fund charge (which you'd still pay through the IPSE pension too).

[Fred Bloggs]

This is pretty much what I've done, but with Hargraeves Lansdown as teh platform. Set up a SIPP, took minutes online. Then downloaded the form to allow for direct Company payments to be set up. Now I just pop online and my LTD can make payments directly.

Pick a Vanguard Lifestrategy fund and let it sit there is probably the simplest advice. As ever it's good to read up, recommend this over an IFA https://www.amazon.co.uk/Smarter-Inv...dp/0273785370/

So, you pay HL 0.45% to hold your low cost Vanguard fund for you? I'd have a think about that for a second if I were you.