Setting up a workplace pension without excessive costs

**Fred Bloggs** · 12 January 2018, 10:34

Open an account with Cavendish or Close Bros. Both charge 0.25% platform fees. You may choose a low cost tracker style fund until you find your feet. You do not need an IFA. Anyone who says you do........... is an iFA. Browse around here, loads more info.

**northernladuk** · 12 January 2018, 10:39

Originally posted by Fred Bloggs View Post

Open an account with Cavendish or Close Bros. Both charge 0.25% platform fees. You may choose a low cost tracker style fund until you find your feet. You do not need an IFA. Anyone who says you do........... is an iFA. Browse around here, loads more info.

Not so sure it's as simple as that. If you don't have a clue or don't want the hassle an IFA can be an option. Easy for those in the know to say.
Have to shop around and look for a good one that meets your criteria like anything else. I'd turn down any recommendation flat on principle and go get my own if I was in the OP's shoes

**Lance** · 12 January 2018, 10:59

Originally posted by Tiger22 View Post

I have decided to set up a workplace pension to take advtantage of the associated pension tax breaks. My Accountants passed me onto their recommended Financial Advisor but his charges seem very excessive (4.5% of all money invested with them). All I want is a simple set up of the pension scheme so the company can start making contributions, potentially just with the pension provider I have already pre-chosen.

Can anyone advise how this can be done cheaply without incurring massive costs to a FA? Any recommendations?

have you asked that company how your company pays?
It's probably as simple as a standing order, or irregular BACS transfers.

**Tiger22** · 12 January 2018, 11:18

Originally posted by northernladuk View Post

Not so sure it's as simple as that. If you don't have a clue or don't want the hassle an IFA can be an option. Easy for those in the know to say.
Have to shop around and look for a good one that meets your criteria like anything else. I'd turn down any recommendation flat on principle and go get my own if I was in the OP's shoes

Thanks for everyone's reponses so far.

If it as simple as setting up a pension in my name and then asking the company (it's my own Ltd company) to pay into it (up the 40k allowance) then that sounds very simple. For some reason I was under the impression that a workplace pension had to be officially organised via the company on behalf of the employee and that there could potentailly be a significant setup fee involved in this.

**northernladuk** · 12 January 2018, 11:25

Originally posted by Tiger22 View Post

Thanks for everyone's reponses so far.

If it as simple as setting up a pension in my name and then asking the company (it's my own Ltd company) to pay into it (up the 40k allowance) then that sounds very simple. For some reason I was under the impression that a workplace pension had to be officially organised via the company on behalf of the employee and that there could potentailly be a significant setup fee involved in this.

It is as simple as that to setup to be fair but I'd ask are you going to invest in the right thing. I do you use an IFA but he's a rugby pal so I don't get charged but I've relied on his recommendation for investments and they've been absolutely spot on. I wouldn't trust myself to have made the same choices. I might not have picked two medium options and a higher risk option if I'd done it either. I guess with research I'd have gotten it about right but as his recommendations have been spot on I am not all for saying you don't need an IFA. Each to their own I guess.

**Fred Bloggs** · 12 January 2018, 11:27

Originally posted by Tiger22 View Post

Thanks for everyone's reponses so far.

If it as simple as setting up a pension in my name and then asking the company (it's my own Ltd company) to pay into it (up the 40k allowance) then that sounds very simple. For some reason I was under the impression that a workplace pension had to be officially organised via the company on behalf of the employee and that there could potentailly be a significant setup fee involved in this.

Yes, it is that simple. Open an account on line in a few minutes with your platform of choice, see my recommendations above. Tell the platform that you are making company contribution(s), often a tick box on a form. Make the contribution(s), invest in a fund/shares etc of choice. I repeat, use a low cost world tracker fund or similar until you find your feet, educate yourself and broaden your investing horizons. There is no magic and we all started from a zero knowledge base. Ask yourself, do you want to be an IFA's client, or do you want to take the responsibility for your future? It really is that simple.

**TheCyclingProgrammer** · 12 January 2018, 12:02

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.

**northernladuk** · 12 January 2018, 12:13

Originally posted by Fred Bloggs View Post

Yes, it is that simple. Open an account on line in a few minutes with your platform of choice, see my recommendations above. Tell the platform that you are making company contribution(s), often a tick box on a form. Make the contribution(s), invest in a fund/shares etc of choice. I repeat, use a low cost world tracker fund or similar until you find your feet, educate yourself and broaden your investing horizons. There is no magic and we all started from a zero knowledge base. Ask yourself, do you want to be an IFA's client, or do you want to take the responsibility for your future? It really is that simple.

Opening the account maybe simple. Picking a performing fund for what could grow to 100's of K is not. I don't think saying it's simple is good advice.

I can open a bitcoin wallet in minutes, it's that simple. If it's that simple I should fill my boots with bitcoin obviously...???

Investing isn't simple.

**malvolio** · 12 January 2018, 12:15

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

Setting up a workplace pension without excessive costs