[Feature Request 🔧] SIPP - Employer contributions 👴🏻 💷

It is not no. I’m still waiting for this too.

I’ve now had to open an additional SIPP with a different provider because they haven’t been able to roll out something fairly fundamental in nearly a year.

Feels like Freetrade is slowing down. I get that they’re focused on European rollout but god knows how much longer that’s going for take their focus away from delivering improved functionality in other areas.

5 Likes

Something fundamental such as Employment Contribution & Automatic Payment/direct debit taken periodically and allocated to target ETFs/Stocks?

2 Likes

Don’t get why they released sipp without employer contributions tbh

2 Likes

Because lots of people use SIPPs without employer contributions. Many people open up SIPPs in addition to company pensions. Many unemployed people (and those between jobs) open up SIPPs. And then there is the concept of MVP too.

2 Likes

I have used the FT SIPP to roll up old pensions. I have my current company pension with Scottish widows, but I have no say it that.

2 Likes

Because most people work for an employer and not themselves, and most employers don’t offer the option to pay into your own SIPP. And the biggest advantage of SIPPs for most people is to be able to combine all their old pensions

3 Likes

This is the key thing, as they would need a whole infrastructure of staff to onboard companies to sign up. It is a massive undertaking that would probably not bring a huge amount in at present compared with other improvements. I use FT exactly the same way as you, for old pensions, and spare cash I have. When I change jobs I will transfer that fund across as well.

I would love employer contributions but doubt any company I worked for would want FT as they are happier to have passive accounts with established institutions. Not sure the average worker would want to play with the stock market for their pension like the average person on this forum! :rofl:

That said I would like it added if possible but surely well down the list in priorities.

1 Like

What would be amazing is if you’re pension account number was your NI number and there was a central database of which provider was managing your account. You’re employer’s contribution automatic routed to your chosen provider.

No more being stuck with high fees just because someone at head office decided on the pension provider.

4 Likes

That is such a fantastic idea we know it won’t ever happen :rofl: Don’t think the FT roadmap would cover it at present :stuck_out_tongue_winking_eye:

And thats FT’s choice, as it is my choice to not use them until they develop it

I am not sure that the average person on this forum would like that either. Mind you I am not saying they wouldn’t just that the vast majority of the people attracted to Freetrade are small time and inexperienced traders. Perhaps they will grow in confidence and with time will want to manage their own pensions. I don’t know.

I can easily imagine that some people like the idea of multiple pensions. Some managed by themselves others by others. A diversification strategy.

For avoidance of doubt, in no way am I against this feature. The heart of my comment is simply a reflection on:

… and the point being that most definitely the present product meets some people’s needs.

1 Like

Contractors (with their own limited company) and freelancers.

1 Like

Where is that from please?

It was from pensionbee. I dm you the link.

Thank you so much!

I recommend you speak to your accountant. It isn’t as simple as it seems from screenshot above. The HMRC has certain tests it applies to Company director pension contributions. One example is the level of the pension with respect to total remuneration for the job and another one being the level of the companies annual profits.

You might think that you get away with it only to be hit by an investigation later. This is not worth it. Speak to an accountant to make sure everything is above board i.e. the right amount is paid.

(and btw corporation tax is 19%, the main rate goes up in fin year 2023-2024, but the small profits rate remains at 19% i.e. tax is tapered from a threshold and 25% is profits above 250K.)

3 Likes

Hi,

I want to use salary sacrifice but without this available yet, I’m going to keep my HL SIPP and pay into that salary sacrifice and then transfer the cash periodically, say quarterly, from HL to FT. FT say I can do this as often as I like but I’m not sure if HL would like this.

Has anyone tried this with either HL or another SIPP provider as you’re effectively just using them as a middle man and they will incur costs for each transfer you do.

Thanks

3 Likes

Just check the rules at HL. It doesn’t matter if they like it or not as I am pretty sure they won’t change their fee structure because you do it. I am actually contemplating something similar for my main job but mainly for the freelance work I do. It would be so good to have some employer options but not sure it will happen soon TBH.

Oh, and welcome to the community!! :wave: :+1:

1 Like

My plan at the moment too, I have done it once (partial transfer of almost all funds from HL) and plan to do it again next year, I imagine at some point they might balk at this if you do it too many times. I’m hoping they don’t join the dots this year though!

It is really annoying as I’d happily transfer it all if FT had employer contributions, so I wish Freetrade would add this feature :pray: