SIPP Poll

Freetrade Chat šŸ”„
1

Just curious what people are feeling about the new SIPP and this post is mainly around the poll, discussion over in the main thread

Will you be opening a SIPP with Freetrade?
  • Yes
  • No

0 voters

If no, why not?
  • I donā€™t need one
  • I have one with someone else and donā€™t want to transfer
  • Other, type below why not

0 voters

If yes, will you be transferring from another provider or open a new account?
  • Transferring
  • New Account

0 voters

How much will be in your SIPP by the end of this year (ideally)
  • Ā£0-1,000
  • Ā£1,000-10,000
  • Ā£10,000-100,000
  • Ā£100,000-250,000
  • Ā£250,000+

0 voters

1 Like
2

No

Expensive for small pot.

Context: Compared to a HL SIPP w/ <10K and only buy stocks when transferring workplace pensions in.

2 Likes
3

Yes, but not necessarily right away. Iā€™ll need to read over the T&Cs etc.

4

Yeah, some details on the post retirement side would be useful.

5

I love to use this in future (although this isnā€™t whole lot cheaper than ii) current issue is employer not being able to contribute.

1 Like
6

I found this to be more of an employer issue than platform (though in this case Freetrade donā€™t support it currently either). My employers have never supported other pension providers than their own :confused:

2 Likes
7

My employer doubles my contribution upto 12% but they wouldnā€™t contribute outside of the company pension trust. My contribution is salary sacrificed so extra tax benefits there. I will probably transfer my old pension (30K) to my current employers to get the compounding going. I canā€™t see how a SIPP would be more beneficial for my circumstance.

Having said that this is a great opportunity for those that get the bare bones pensions from their employers

2 Likes
8

Donā€™t really get your point around compounding, you get the same effect on your money regardless of whether you combine your pots or not.

Personally I will transfer my old pension in a SIPP and have the one of my current employer separate. Reason being is that my employerā€™s charges a % fee so donā€™t want that pot to get too high and also I have outperformed my employer pension 3 years in a rowā€¦

Will not transfer the entire thing due to employer contributions not being supported

Would really like to understand options post retirement too

2 Likes
9

When they enable employer contributions, Iā€™ll be vey interested. Until then Iā€™ll stick with HL.

1 Like
10

Ah yes, how silly of me! Doh!

11

Too expensive for my small pot. Sliding scale would encourage me to move over.

4 Likes
12

Not an issue for my employer - already contribute to ii. Iā€™d love to move to Vanguard (not keen on individual stocks anyway) or FT when this support is added. I would have preferred a small % based fees instead of fixed amount so I can spread it across platforms.

14

If Freetrade provide a comparable service in terms of CS and lack of other fees then apart from Vanguard having been around a long time why wouldnā€™t they compete? Vanguard funds at a lower cost sounds good to me :smile:

2 Likes
16

I absolutely agree. Iā€™d even go so far as to say that Freetrade might want to consider a simpler SIPP workflow option for people.

Given Vanguard or Freetrade for someone who I know isnā€™t that knowledgeable in investing. Iā€™m quite happy to point them to vanguard and their pages that take people through picking a life strategy fund as it makes sense and is easy.

The options on Freetrade potentially may be to much, or at the very least there isnā€™t a ā€˜hereā€™s a guide to SIPPs and what you might look for for a fund depending on your riskā€™

I think HL has something similar that can point to a set of diary reliable funds for things like SIPPs. Perhaps something Freetrade would want to look at.

Mix of both in my case

6 Likes
17

Expensive for small pot

2 Likes
18

The argument for using a FT ISA over a Vanguard ISA is the same with SIPPs. You get the added bonus of trading stocks which can exceed Vanguard fundsā€™ performance. There will be a higher cost impact if you have a small pot but there are a lot of HL and AJBell users with 100K+ Pensions

19

@ytsruh @Eden - Yes, love Vanguard and my OH use it - as soon as that employer contribution support is added I am going to jump ship to Vanguard.

Reg. Index fund being simple - It is also blessing in disguise that there are only small number of funds available to choose from. You would wish Indexes and Funds are simple but it is mind boggling as to how much choice (unnecessary distraction) there is - less is more when it comes to investing choice.

21

Vanguard wonā€™t let me invest 100% of my pension into Tesla stock :grin:

3 Likes
22

Vanguard have been around for 45 years and have $6.2tn aum, founded by legendary Jack Bogle. Even if one has a smaller pot - it is likely to be their main retirement savings so there is a clear advantage in terms of trust.

I wonā€™t go into details of stock picking as it is a thorny issue for some. But 75% of professional managers fail to beat the index over 3 years, and nearly 95% over long term. Individual investor may get lucky for a year or two, but it is not a suitable strategy for preparing and more importantly in retirement.

1 Like
23

And those professional investors have access to immense amounts of data including satellite imaging, bizjet flights, credit card, web-traffic, location etcā€¦

Individual investors have no idea if Walmart is going to beat earnings, if Berkshire is going to make a $10bn buy, how many people cancelled their Netflix subscriptions etc. but to smart money those things shouldnā€™t be a surprise.

Iā€™d be a bit concerned about recommending a Freetrade SIPP to novice investors without some kind of workflow or a shortlist of iShares / Vanguard broad indices as a starting point (as others have suggested above) to simplify it.

Otherwise Iā€™d worry that someone just dumps their entire retirement into Tesla/ARK/Kodak or whatever else is hyped up / marketed at the time without understanding the implications of this.

3 Likes