MEGATHREAD: Freetrade SIPP

First, I think @bitflip has provided you with some very good answers. So I donā€™t want to repeat them.

I just wanted to add a couple of notes.

You mentioned you have a pension with Aviva? If you were considering transferring this pension, in full or in part, then you need to consider what benefits Aviva provide, and what you may lose by transferring to a SIPP.

Many pensions providers for example provide 100% protection on pensions, as compared to the 85k protection from the FSCS. With a SIPP youā€™re only covered up to the 85k. Youā€™d need to check if what kind of pension you have and how itā€™s covered with Aviva.

Also, many companies get a deal with pension providers to get a discount, or other services are bundled in.

That said, that doesnā€™t mean you shouldnā€™t transfer your pension. itā€™s just something to consider.

On the all eggs in one basket. Iā€™ll only add that Freetrades SIPP is managed by a third party. In the event of Freetrade going bust, from past examples, your SIPP is usually protected. I consolidate my pension into a SIPP by doing partial transfers every year, and transferred my old pension. But my pension isnā€™t a lot of money, thereā€™s no advantage to splitting it upā€¦ for me.

Advantages of leaving pensions with a pension provider is that you can basically set it and forget it. If youā€™re prone to changing things up and you donā€™t want to do this with your pension you might prefer it in an account you donā€™t access all the timeā€¦ really depends on yourself. That said, always remember to check your pension at least once a year and make sure its in an appropriate fund (if a pension), or ETF or similar (if a SIPP) suitable to your age and risk appetite.

Thank you all of you for your answers, very useful and exactly what I was looking for. I have much clearer ideas what to research and do now. Iā€™ll try to avoid an essay but some points:

I am comfortable managing part of it, Iā€™ve been managing an ISA for the last 6 months and feel I know enough of what Iā€™m doing to open a small part of my pension in a SIPP. Itā€™s good that you mentioned the ā€œplay penā€ pension bit because thatā€™s exactly how I would view this, it would be a proportion of my pension, not all of it. Thatā€™s what I meant by ā€œrisk averseā€ rather than referring to investing in general.

Thank you, yes I have paid two years into a LISA but the problem is I never have a spare Ā£4,000 and being nowhere near 60 and no longer being a first time buyer, what I feel Iā€™m doing here is tying up money that I might need to buy a bigger property in the future. If FreeTrade provided a LISA Iā€™d probably transfer but as it is, I get a pathetic interest in addition to the 25% and dividing 25% over 15 or so years gives a return of less than 2%, ergo I think I can get much more even just dividend investing.

An excellent point I hadnā€™t though of, Ā£75 per year if you keep it up. Plus more dividends and, ultimately, even more capital!

Yes, it took me until this year to realise that but youā€™re right, cash is a guaranteed loser. Thatā€™s why Iā€™ve been trying to tie up as much as I can get away with in my ISA. Only disadvantage is liquidity and the need to hold spare cash but thatā€™s why I thought the 3% interest might be a solution, albeit imperfect.

Iā€™ve actually got two pensions each in Aviva and Standard Life, itā€™s a bit messy! Aviva charges are 0.5% for both but Standard Life is odd with 0.355% for one and 0.672% for the other - Iā€™ve written to ask them why! However, the only disadvantage potentially for having the two different providers is one of them not being paid into, which isnā€™t necessarily a disaster. Iā€™ll take a good look at the performance of each fund. Taking everything into account, including the protection, it will potentially make sense to keep both providers and transfer something like Ā£5,000 into a FreeTrade SIPP in addition from the worst performing one. Or do a series of partial transfers as I think Eden said above.

So thank you again, I appreciate the very helpful comments.

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Ive got 2 old pensions I was considering moving into a Sipp, think the value is only 5000 ish, so would be interesting to see if I could improve their value by doing it myself, my company pension, I would leave as is. Anyone else thought the same?

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https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/personal-pension-account

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Would it be better to have vuag in a sipp or an isaā€¦ and what if im currently working overseas in saudi?.

Well that depends on your personal circumstances and goals.

Do you think you will need to cash out before you hit 55 or 57 in 2028. ISA offers a bit more flexibility but why not have both with Freetrade.

Im not sure of the rules of contributions living abroad though

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Please could we see a more comprehensive HMRC narrative?

Something like

Tax relief for period mm-yyyy in respect of Ā£xxx.xx deposit

Perhaps, Tax Relief entries should expand as Dividend payments do now to give the extra detail.

This allows us the ability to directly tie an HMRC payment with a deposit given there might be multiple deposits in a month (though imagine most months would be a single deposit).

This additional information should be included in any data export being worked on.

Thank you.

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Is Freetrade going to add workplace pension/salary sacrifice for the SIPP any time soon? Is it in the pipeline?

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Good luck getting a reply

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Only god knows :persevere::weary:
Sorry to say that!

Anyone from FT going to chime in?

:wave: Freetrade

Anyone from Freetrade on these forums?

@Yeah sorry for the delay. We would like to add this feature, and we understand how important and highly-requested it is by many people, however itā€™ll be a while longer until we are able to add this.

This is due to a number of other priorities we are working on right now.

Appreciate your patience, thanks for bearing with us.

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Ok cheers Sam, thatā€™s good to know. Hopefully it wonā€™t be too long.

Donā€™t hold you breath

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:eyes:

I think I need clarification on this. My stuff is not to be touched even with FCA approval

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It talks about Gaudiā€™s own assets, not the SIPPs themselves. It just looks like the FCA wants to ensure directors donā€™t asset strip the company.

For some context - Freetrad SIPP and FCA / Vanguard concerns - #3 by acamp

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