Freetrade vs Vanguard SIPP funds ?

Freetrade Chat šŸ”„
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Hi there,

Iā€™m a Freetrade Standard user and have an ISA already.
I have workplace pensions + SIPPs at various providers and want to transfer them to either Vanguard or Freetrade SIPPs.
The total amount in my pension pots is right around the threshold where it starts making sense to pay Freetrade an extra Ā£5/month for Plus instead of being percentage based like Vanguard (Iā€™m not sure how to factor exchange fees in, though)

However, Vanguard has great ā€œset and forgetā€ funds for SIPPs like ā€œVanguard Target Retirementā€. I donā€™t think these are available on Freetrade ? Whatā€™s a good alternative ? Can you DIY a similar fund to Vanguardā€™s Target Retirement ?

Also, Iā€™ve read that some of the stocks/ETFs available on a Freetrade ISA may not be available for a SIPP ? Why is that and is there a list somewhere ?

Thanks

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Hi @reno

Welcome to the community :ocean:

I passed the same threshold and decided to have my money with Freetrade rather than Vanguard because it would only get cheaper as it grew.

There isnā€™t a target retirement age product from Freetrade and these funds are vanguard exclusive, there is however the ability for you to do you own thing and save management fees.

Depending on age and risk tolerance you could invest a pct in UK Gilts and set that to auto renew every month with the rest in VWRL/VWRP. This is basically what vanguard do for you.

Worth nothing that there isnā€™t a draw down feature at Freetrade yet so if youā€™re closer to retirement age then it might not be suitable.

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On Vanguard i believe thereā€™s a threshold arounf Ā£375/ year after which you dont pay anymore fees and thus as a % your fees will go down. I have funds with both, but I have stopped adding to FT since ive seen it appears to be relatively costly to get the funds out. I think everyone has assumed that FT will fixthis over time as FT get to be a more mature business, but thats not guaranteed. So in the meantime im paying into my Vanguard pension.
Also and quite important it depends if you are happy in funds and being relatively inactive, or do you back yourself to trade shares , I think Vanguard is a set and forget strategy and FT is if you want to be more active and back yourself and your decision making versus a passive index. Good luck :+1: