Looking for pension advice
Feb 9th 2022, 5:39 pm
#3
BE Forum Addict
Joined: Apr 2009
Location: Scotland & Touraine [37]
Posts: 3,018
Re: Looking for pension advice
The advice you need is very personal to you and your circumstances and cannot be answered on a public forum.
If your current pension is a company pension then you have to consider what benefits you will be giving up.
If you live in France then your "tax-free" lump sum will be taxable in France.
Have you asked for a transfer value of your existing pension scheme?
You may have been given a "value" of the pension but that is not the transfer value.
You should consult a UK financial adviser.
There is a scheme in the UK where you are obliged to have a free consultation with an IFA but I do not know if that applies to a non-resident.
HTH
If your current pension is a company pension then you have to consider what benefits you will be giving up.
If you live in France then your "tax-free" lump sum will be taxable in France.
Have you asked for a transfer value of your existing pension scheme?
You may have been given a "value" of the pension but that is not the transfer value.
You should consult a UK financial adviser.
There is a scheme in the UK where you are obliged to have a free consultation with an IFA but I do not know if that applies to a non-resident.
HTH
Feb 9th 2022, 5:53 pm
#5
Just Joined
Thread Starter
Joined: Sep 2021
Posts: 25
Re: Looking for pension advice
The advice you need is very personal to you and your circumstances and cannot be answered on a public forum.
If your current pension is a company pension then you have to consider what benefits you will be giving up.
If you live in France then your "tax-free" lump sum will be taxable in France.
Have you asked for a transfer value of your existing pension scheme?
You may have been given a "value" of the pension but that is not the transfer value.
You should consult a UK financial adviser.
There is a scheme in the UK where you are obliged to have a free consultation with an IFA but I do not know if that applies to a non-resident.
HTH
If your current pension is a company pension then you have to consider what benefits you will be giving up.
If you live in France then your "tax-free" lump sum will be taxable in France.
Have you asked for a transfer value of your existing pension scheme?
You may have been given a "value" of the pension but that is not the transfer value.
You should consult a UK financial adviser.
There is a scheme in the UK where you are obliged to have a free consultation with an IFA but I do not know if that applies to a non-resident.
HTH
Also, the lump sum will be taxable in France, althought there seems to be a flat tax option.
Yes, I have the transfer values.
I've talked to several UK FAs.
What I was seeking was some experience of people who have looked into setting up a SIPP, or actually carried it out. I have some proposals already, so I'm looking to validate them.
Thanks for your help.
Feb 9th 2022, 6:03 pm
#6
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,439
Re: Looking for pension advice
It may not be possible to get an UK IFA to talk to you if you're not resident in the UK/ are resident in another country. And this requirement to have a consultation when no IFA will talk to you can be an insurmountable stumbling block, as others on BE have noted previously.
Feb 9th 2022, 7:04 pm
#7
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Thread Starter
Joined: Sep 2021
Posts: 25
Re: Looking for pension advice
It may not be possible to get an UK IFA to talk to you if you're not resident in the UK/ are resident in another country. And this requirement to have a consultation when no IFA will talk to you can be an insurmountable stumbling block, as others on BE have noted previously.
As I said before, the reason for posting here is to see if anyone has experience of setting up a SIPP.
Feb 9th 2022, 7:08 pm
#8
Joined: Dec 2001
Location: Dixie, ex UK
Posts: 52,439
Feb 9th 2022, 7:13 pm
#9
Just Joined
Thread Starter
Joined: Sep 2021
Posts: 25
Feb 9th 2022, 7:42 pm
#10
Lost in BE Cyberspace
Joined: Jan 2012
Location: Dépt 61
Posts: 5,254
Re: Looking for pension advice
That was my kneejerk reaction too - that financial services weren't included in the EU UK trade deal, and how many IFAs have passporting rights to deal with clients in the EU.
I don't know what advice they can give and what they can do on the client's behalf without passporting rights.
The answers are probably in here if anyone is interested enough to read it and report back LOL
https://www.fca.org.uk/publication/o...assporting.pdf
I don't know what advice they can give and what they can do on the client's behalf without passporting rights.
The answers are probably in here if anyone is interested enough to read it and report back LOL
https://www.fca.org.uk/publication/o...assporting.pdf
Feb 10th 2022, 6:44 am
#11
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Joined: Apr 2009
Location: Scotland & Touraine [37]
Posts: 3,018
Re: Looking for pension advice
I have a SIPP.
I didn't transfer a company pension into the SIPP but I do have experience in dealing with a SIPP and I represent an elderly multi millionaire relative in managing his portfolios.
I have regular meetings with several of his IFAs.
My experience is totally UK.
I use AJ Bell - a low-cost provider.
There have been issues with Hargreaves Lansdown regarding under-the-table payments amongst other things.
I would avoid high cost providers like SJP.
I hope that is relevant to your post.
I didn't transfer a company pension into the SIPP but I do have experience in dealing with a SIPP and I represent an elderly multi millionaire relative in managing his portfolios.
I have regular meetings with several of his IFAs.
My experience is totally UK.
I use AJ Bell - a low-cost provider.
There have been issues with Hargreaves Lansdown regarding under-the-table payments amongst other things.
I would avoid high cost providers like SJP.
I hope that is relevant to your post.
Feb 10th 2022, 8:19 am
#12
Just Joined
Thread Starter
Joined: Sep 2021
Posts: 25
Re: Looking for pension advice
I have a SIPP.
I didn't transfer a company pension into the SIPP but I do have experience in dealing with a SIPP and I represent an elderly multi millionaire relative in managing his portfolios.
I have regular meetings with several of his IFAs.
My experience is totally UK.
I use AJ Bell - a low-cost provider.
There have been issues with Hargreaves Lansdown regarding under-the-table payments amongst other things.
I would avoid high cost providers like SJP.
I hope that is relevant to your post.
I didn't transfer a company pension into the SIPP but I do have experience in dealing with a SIPP and I represent an elderly multi millionaire relative in managing his portfolios.
I have regular meetings with several of his IFAs.
My experience is totally UK.
I use AJ Bell - a low-cost provider.
There have been issues with Hargreaves Lansdown regarding under-the-table payments amongst other things.
I would avoid high cost providers like SJP.
I hope that is relevant to your post.
Btw, you're next door, I'm in Montrichard (41).
Feb 10th 2022, 9:36 am
#13
BE Forum Addict
Joined: Apr 2009
Location: Scotland & Touraine [37]
Posts: 3,018
Re: Looking for pension advice
I use an IFA to manage my SIPP but you can do it yourself and choose your own funds from the selection offered.
A SIPP can be written "In Trust" (you would have to confirm that with the provider) which means that it is outwith your estate and exempt for Inheritance tax. (Not sure how France would deal with that).
The fund can be left to the beneficiaries of your choice and in turn they can leave it to their beneficiaries.
In this case the fund is no longer a "pension" fund but simply an investment portfolio.
Income tax is payable when money is withdrawn.
As far as fees are concerned, you need to establish not only the level of fees but also when they are charged.
Some providers charge an "entry" fee which can be between 1% and 6%.
There will also be an annual fee within the same range.
I know of one company (SJP) that charges an exit fee if you decide to leave them.
Larger investments can attract reductions in fees.
If you have a company scheme and you no longer work for that company then you will not normally benefit from the fund growth but simply have the rate of inflation applied to your part of the company fund ( e.g. Barclays Bank)
A moderate risk portfolio increased by 10% to 15% in 2021 as compared to the rate of inflation (at 2%??).
You are entitled to a complete breakdown of the fees including IFA's fees and fund fees (vary by fund) and platform fees.
The latter two are detailed on the platform's website.
Unless you are very familiar which funds to choose and are prepared to spend a lot of time online managing them, then I would strongly suggest using an IFA.
Because of the size of my relatives portfolios, he gets a reducing scale of fees for each slice of his investment.
The starting point for the management charges is 1% with a step down in fees for each million invested.
My logic for using an IFA is that if I am unable to manage my SIPP then my OH would need someone to manage it for her.
The average increase in my SIPP over 10 years is 9% a year.
Paying 1% to an IFA is a small price to get the return stated above.
HTH
A SIPP can be written "In Trust" (you would have to confirm that with the provider) which means that it is outwith your estate and exempt for Inheritance tax. (Not sure how France would deal with that).
The fund can be left to the beneficiaries of your choice and in turn they can leave it to their beneficiaries.
In this case the fund is no longer a "pension" fund but simply an investment portfolio.
Income tax is payable when money is withdrawn.
As far as fees are concerned, you need to establish not only the level of fees but also when they are charged.
Some providers charge an "entry" fee which can be between 1% and 6%.
There will also be an annual fee within the same range.
I know of one company (SJP) that charges an exit fee if you decide to leave them.
Larger investments can attract reductions in fees.
If you have a company scheme and you no longer work for that company then you will not normally benefit from the fund growth but simply have the rate of inflation applied to your part of the company fund ( e.g. Barclays Bank)
A moderate risk portfolio increased by 10% to 15% in 2021 as compared to the rate of inflation (at 2%??).
You are entitled to a complete breakdown of the fees including IFA's fees and fund fees (vary by fund) and platform fees.
The latter two are detailed on the platform's website.
Unless you are very familiar which funds to choose and are prepared to spend a lot of time online managing them, then I would strongly suggest using an IFA.
Because of the size of my relatives portfolios, he gets a reducing scale of fees for each slice of his investment.
The starting point for the management charges is 1% with a step down in fees for each million invested.
My logic for using an IFA is that if I am unable to manage my SIPP then my OH would need someone to manage it for her.
The average increase in my SIPP over 10 years is 9% a year.
Paying 1% to an IFA is a small price to get the return stated above.
HTH
Feb 10th 2022, 9:58 am
#14
Just Joined
Thread Starter
Joined: Sep 2021
Posts: 25
Re: Looking for pension advice
I use an IFA to manage my SIPP but you can do it yourself and choose your own funds from the selection offered.
A SIPP can be written "In Trust" (you would have to confirm that with the provider) which means that it is outwith your estate and exempt for Inheritance tax. (Not sure how France would deal with that).
The fund can be left to the beneficiaries of your choice and in turn they can leave it to their beneficiaries.
In this case the fund is no longer a "pension" fund but simply an investment portfolio.
Income tax is payable when money is withdrawn.
As far as fees are concerned, you need to establish not only the level of fees but also when they are charged.
Some providers charge an "entry" fee which can be between 1% and 6%.
There will also be an annual fee within the same range.
I know of one company (SJP) that charges an exit fee if you decide to leave them.
Larger investments can attract reductions in fees.
If you have a company scheme and you no longer work for that company then you will not normally benefit from the fund growth but simply have the rate of inflation applied to your part of the company fund ( e.g. Barclays Bank)
A moderate risk portfolio increased by 10% to 15% in 2021 as compared to the rate of inflation (at 2%??).
You are entitled to a complete breakdown of the fees including IFA's fees and fund fees (vary by fund) and platform fees.
The latter two are detailed on the platform's website.
Unless you are very familiar which funds to choose and are prepared to spend a lot of time online managing them, then I would strongly suggest using an IFA.
Because of the size of my relatives portfolios, he gets a reducing scale of fees for each slice of his investment.
The starting point for the management charges is 1% with a step down in fees for each million invested.
My logic for using an IFA is that if I am unable to manage my SIPP then my OH would need someone to manage it for her.
The average increase in my SIPP over 10 years is 9% a year.
Paying 1% to an IFA is a small price to get the return stated above.
HTH
A SIPP can be written "In Trust" (you would have to confirm that with the provider) which means that it is outwith your estate and exempt for Inheritance tax. (Not sure how France would deal with that).
The fund can be left to the beneficiaries of your choice and in turn they can leave it to their beneficiaries.
In this case the fund is no longer a "pension" fund but simply an investment portfolio.
Income tax is payable when money is withdrawn.
As far as fees are concerned, you need to establish not only the level of fees but also when they are charged.
Some providers charge an "entry" fee which can be between 1% and 6%.
There will also be an annual fee within the same range.
I know of one company (SJP) that charges an exit fee if you decide to leave them.
Larger investments can attract reductions in fees.
If you have a company scheme and you no longer work for that company then you will not normally benefit from the fund growth but simply have the rate of inflation applied to your part of the company fund ( e.g. Barclays Bank)
A moderate risk portfolio increased by 10% to 15% in 2021 as compared to the rate of inflation (at 2%??).
You are entitled to a complete breakdown of the fees including IFA's fees and fund fees (vary by fund) and platform fees.
The latter two are detailed on the platform's website.
Unless you are very familiar which funds to choose and are prepared to spend a lot of time online managing them, then I would strongly suggest using an IFA.
Because of the size of my relatives portfolios, he gets a reducing scale of fees for each slice of his investment.
The starting point for the management charges is 1% with a step down in fees for each million invested.
My logic for using an IFA is that if I am unable to manage my SIPP then my OH would need someone to manage it for her.
The average increase in my SIPP over 10 years is 9% a year.
Paying 1% to an IFA is a small price to get the return stated above.
HTH
Feb 10th 2022, 5:51 pm
#15
Just Joined
Thread Starter
Joined: Sep 2021
Posts: 25
Re: Looking for pension advice
I use an IFA to manage my SIPP but you can do it yourself and choose your own funds from the selection offered.
A SIPP can be written "In Trust" (you would have to confirm that with the provider) which means that it is outwith your estate and exempt for Inheritance tax. (Not sure how France would deal with that).
The fund can be left to the beneficiaries of your choice and in turn they can leave it to their beneficiaries.
In this case the fund is no longer a "pension" fund but simply an investment portfolio.
Income tax is payable when money is withdrawn.
As far as fees are concerned, you need to establish not only the level of fees but also when they are charged.
Some providers charge an "entry" fee which can be between 1% and 6%.
There will also be an annual fee within the same range.
I know of one company (SJP) that charges an exit fee if you decide to leave them.
Larger investments can attract reductions in fees.
If you have a company scheme and you no longer work for that company then you will not normally benefit from the fund growth but simply have the rate of inflation applied to your part of the company fund ( e.g. Barclays Bank)
A moderate risk portfolio increased by 10% to 15% in 2021 as compared to the rate of inflation (at 2%??).
You are entitled to a complete breakdown of the fees including IFA's fees and fund fees (vary by fund) and platform fees.
The latter two are detailed on the platform's website.
Unless you are very familiar which funds to choose and are prepared to spend a lot of time online managing them, then I would strongly suggest using an IFA.
Because of the size of my relatives portfolios, he gets a reducing scale of fees for each slice of his investment.
The starting point for the management charges is 1% with a step down in fees for each million invested.
My logic for using an IFA is that if I am unable to manage my SIPP then my OH would need someone to manage it for her.
The average increase in my SIPP over 10 years is 9% a year.
Paying 1% to an IFA is a small price to get the return stated above.
HTH
A SIPP can be written "In Trust" (you would have to confirm that with the provider) which means that it is outwith your estate and exempt for Inheritance tax. (Not sure how France would deal with that).
The fund can be left to the beneficiaries of your choice and in turn they can leave it to their beneficiaries.
In this case the fund is no longer a "pension" fund but simply an investment portfolio.
Income tax is payable when money is withdrawn.
As far as fees are concerned, you need to establish not only the level of fees but also when they are charged.
Some providers charge an "entry" fee which can be between 1% and 6%.
There will also be an annual fee within the same range.
I know of one company (SJP) that charges an exit fee if you decide to leave them.
Larger investments can attract reductions in fees.
If you have a company scheme and you no longer work for that company then you will not normally benefit from the fund growth but simply have the rate of inflation applied to your part of the company fund ( e.g. Barclays Bank)
A moderate risk portfolio increased by 10% to 15% in 2021 as compared to the rate of inflation (at 2%??).
You are entitled to a complete breakdown of the fees including IFA's fees and fund fees (vary by fund) and platform fees.
The latter two are detailed on the platform's website.
Unless you are very familiar which funds to choose and are prepared to spend a lot of time online managing them, then I would strongly suggest using an IFA.
Because of the size of my relatives portfolios, he gets a reducing scale of fees for each slice of his investment.
The starting point for the management charges is 1% with a step down in fees for each million invested.
My logic for using an IFA is that if I am unable to manage my SIPP then my OH would need someone to manage it for her.
The average increase in my SIPP over 10 years is 9% a year.
Paying 1% to an IFA is a small price to get the return stated above.
HTH
Do you take into account the guarantee amount of £85,000 per SIPP in your work? Or are you comfortable enough in the financial strength of the providers?