SIPP Poll

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 don’t need one
  • I have one with someone else and don’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)
  • £0-1,000
  • £1,000-10,000
  • £10,000-100,000
  • £100,000-250,000
  • £250,000+

0 voters

1 Like

No

Expensive for small pot.

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

2 Likes

Yes, but not necessarily right away. I’ll need to read over the T&Cs etc.

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

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

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I found this to be more of an employer issue than platform (though in this case Freetrade don’t support it currently either). My employers have never supported other pension providers than their own :confused:

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My employer doubles my contribution upto 12% but they wouldn’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 can’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

Don’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 employer’s charges a % fee so don’t want that pot to get too high and also I have outperformed my employer pension 3 years in a row…

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

Would really like to understand options post retirement too

2 Likes

When they enable employer contributions, I’ll be vey interested. Until then I’ll stick with HL.

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Ah yes, how silly of me! Doh!

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

3 Likes

Not an issue for my employer - already contribute to ii. I’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.

Its absolute madness to try and compete against Vanguard. That product is absolute fire :fire:

Personally I think FreeTrade should stick to the ISA world. More than enough business to be viable here

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 wouldn’t they compete? Vanguard funds at a lower cost sounds good to me :smile:

2 Likes

Its a fair point.

I’d point to the simplicity of Vanguard. Indexes & funds are inherently easier to understand for the lay user and with Freetrade the temptation to buy individual companies only adds to complexity (whilst also adding to flexibility).

The ISA & SIPP markets target different markets in my eyes. SIPP is money you are saving for retirement. ISA is money your looking to save & grow that may be needed before retirement. That in itself, attracts different investment strategies & risk appetites.

However I also accept that a lot of people do use an ISA as a retirement vehicle as well

2 Likes

I absolutely agree. I’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 isn’t that knowledgeable in investing. I’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 isn’t a ‘here’s a guide to SIPPs and what you might look for for a fund depending on your risk’

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

5 Likes

Expensive for small pot

1 Like

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 funds’ 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

@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.

That ‘added bonus’ is also added risk - it becomes a cyclical argument.

‘Trading stocks’ is (historically) statistically proven to underperform indexes. But more so than this it adds to both the complexity and risk of a pension - the average pension person is likely risk averse when it comes to pensions so I’m not confident that the FT offering has a bigger addressable market than an index and/or fund based one such as Vanguards.

Does it have a market, absolutely. Is it for everybody, aboslutely not. Does it have mass market appearl (in its current format), unlikley.

For every person that is confident and capable of ‘trading stocks’ you have 100 people who are not