Reply to: Is a SIPP pension with HL safe?

[Manic]

The main reason not to use HL:
Their fees are eye-watering over the long term. There are far cheaper providers with whom you can open a SIPP and pour in cash in just the same.

Management fees are prohibitively expensive with HL.

This. I'm with Fidelity and looked at HL initially when comparing platforms.

[Hobosapien]

So is there a pension option for contractors that is as safe as full time employees?

Traditional private pensions where you pay a pension company to manage your pension and invest your contributions for you is the equivalent.

No need for a SIPP if you don't want to manage it yourself. Yes you could pay an IFA but then you are still paying for someone else's expertise so kind of defeats the point of a SIPP.

Worth spending some time reading up on the basics of a SIPP via monevator (or other excellent online information sources) to decide if you want to be so hands on (investment choices are down to your own research) or pay someone else (managed service).

[sludgesurfer]

Thank you ContractorInatractor, who would you recommend instead?

There's plenty of chat on other threads on this subject.

Whilst HL is very uncompetitive for funds where a % fee is charged, for larger portfolios consisting of ETFs, individual shares, bonds and investment trusts, they are actually quite competitive due to the fee being capped at £45 in an ISA and £200 in a SIPP. I use them for my ISA, LISA and SIPP and use Iweb for another passive SIPP. When they changed their charging structure post-RDR they initially planned to apply the 0.45% charge to all investments. They backed down following a lot of bad press and a large number of transfer requests.

Compare the UK’s cheapest online brokers

[northernladuk]

I think you are being a overly paranoid here and if you are why aren't you doing a bit more of your own research? I don't think asking a bunch of strangers is really the best way to gaurantee its safe really.

Go look at how HL works for a start. I think you are completely misunderstanding the very basics of how it works. Go look at the size of the company and its history, finances and so on.

The platform is safe. It's a huge company but it's only a tool at the end of the day. I don't want to be rude but however safe it is the weak link here is you. If you don't have a clue it doesn't matter how safe the platform is, your investments are at risk if you don't know what you are doing.

I'd agree with a comment made a few times here and go find an IFA. You'll pay a bit for it but it really sounds like it's the only way forward for you.

[Lance]

Not worried about it being stolen, I'm worried about the money being lost by the company i'm handing it over to. Is it as safe as an employer pension in that regard?

If it depends, what does it depend on?

It’s a SIPP. You don’t just hand it over. You place it. On their platform and you then manage the investment.
If anyone ‘loses it’ it will be you that’s done it by choosing poor investments.

It depends on a huge number of factors that will take far too long to explain. GET AN IFA.

[Sambola]

The main reason not to use HL:
Their fees are eye-watering over the long term. There are far cheaper providers with whom you can open a SIPP and pour in cash in just the same.

Management fees are prohibitively expensive with HL.

Thank you ContractorInatractor, who would you recommend instead?

[Sambola]

What do you mean by safe?
Are you worried that HL might steal it?
Or that it might be stolen?
Or that it might not return what you want?

Given your apparent knowledge of pensions I strongly recommend you speak to an IFA.

As for HL vs employer pensions. It depends.

Just find professional advice.

Not worried about it being stolen, I'm worried about the money being lost by the company i'm handing it over to. Is it as safe as an employer pension in that regard?

If it depends, what does it depend on?

[Sambola]

Yes and no and maybe and could be.

Generic answer with no detail that's not much use, somewhat similar to the question.

To answer such an open ended question would take a very long reply to cover all the aspects you might be thinking about and the ones you aren't.

Bearing in mind you are in charge of your HL SIPP and don't appear to be very clued up on it all the answer you want is absolutely not. It's not safe at all and there is good chance you are going to lose a lot of money.

So is there a pension option for contractors that is as safe as full time employees?

[contractorinatractor]

The main reason not to use HL:
Their fees are eye-watering over the long term. There are far cheaper providers with whom you can open a SIPP and pour in cash in just the same.

Management fees are prohibitively expensive with HL.

[sludgesurfer]

Hey guys, compared to a typical pension you'd get with an employer, Is a SIPP pension with HL safe?

See below. I can't recommend monevator enough.

Weekend reading: Yes, even brokers can fail you

What you need to know about nominee accounts | Monevator

Investor compensation schemes – are you covered? | Monevator

[dingdong]

Its safer than if you were invested with Robert Maxwell, but not as safe as an Civil Service Golden Pension.

Most big company pensions will have the protection of the Pension Protection Fund which gives you something (usually 90%) over nothing, if HL goes under you still own the shares and funds as they should be help separately from company assets.

Investors using Beaufort's platform thought their investments were safe as they were held separately in nominee accounts - unfortunately nobody had realised that liquidators can quite legally raid your holdings should the platform go bust to cover their fees even if they are in your name.

Ultra cautious people should spread their savings and investments out across more than one platform and only play with the big boys.

[SimonMac]

Its safer than if you were invested with Robert Maxwell, but not as safe as an Civil Service Golden Pension.

Most big company pensions will have the protection of the Pension Protection Fund which gives you something (usually 90%) over nothing, if HL goes under you still own the shares and funds as they should be help separately from company assets.

[Lance]

Hey guys, compared to a typical pension you'd get with an employer, Is a SIPP pension with HL safe?

What do you mean by safe?
Are you worried that HL might steal it?
Or that it might be stolen?
Or that it might not return what you want?

Given your apparent knowledge of pensions I strongly recommend you speak to an IFA.

As for HL vs employer pensions. It depends.

Just find professional advice.

[Hobosapien]

To answer the OP's question, yes SIPPS are safe from HL.

Best SIPP: Build a low cost DIY pension - MoneySavingExpert

Usually with SIPPs, the broker you buy it through, eg, Hargreaves Lansdown, doesn't hold any of the cash; it simply acts as a conduit for you to put the money into whatever funds or investments you want.

Therefore, in the unlikely event it went bust, your money should be OK, and still held by the fund manager or bank it resides with. The protection applies should any of those go into default.

If the operator of a fund, trust or other investment vehicle you've put money into goes bust, you're eligible to get your money back, up to a maximum of £50,000.

If you decide to hold the money as cash within the SIPP, you're then normally covered under the standard £85,000 cover per person, per institution rule, the same as normal savings.

[Scruff]

They key here is "Self-Invested Personal Pension".

You decide what you are going to invest in, be it a traditional managed fund, or Stocks and Shares, as an example. The risk is yours.

Benefits are that you can choose how to (gamble) invest your own money into a fund which you, ultimately manage.