SIPPs

[Sonnenjager]

I am looking into transferring my UK pensions to a SIPP. Hargreaves Lansdowne looks appealing but I am not comfortable with the requirment for a UK address to set it up, however easy that is to work around. Looking at Fidelity and A J Bell as alternatives.

My biggest question is whether anyone has started drawing a pension from a SIPP as an expat and are they experiencing any difficulties?

 

[BritManToo]

HJ are great ....... you only need a UK address just the once.

Used them for 10 years with no problems.

[Oxx]

You are going to need to lie about being resident in the UK to open any investment account in the UK.

 

Hargreaves-Lansdown is expensive.  Someone like Interactive Investor will work out a lot cheaper.  For example, with a GBP 100,000 portfolio HL will cost you GBP 450/year in fees, whilst II will cost GBP 120.  These figures come from https://www.boringmoney.co.uk/isas-pensions/isas-pensions/ which also has brief reviews of all the schemes available without going through an IFA.

 

Do check that your pensions are eligible to be transferred, and whether you'll need to use an IFA.  If you need an IFA you're probably going to find it virtually impossible to find one who will deal with you as non-resident in the UK.  More info at https://www.pensionsadvisoryservice.org.uk/about-pensions/when-things-change/transferring-your-pension

 

Anyway, once you've set up a SIPP, provided you've maintained a UK bank account for drawdown, the SIPP provider would never need to suspect that you're not UK-resident.

[Rmac442]

3 hours ago, BritManToo said:

HJ are great ....... you only need a UK address just the once.

Used them for 10 years with no problems.

Not true ..I'm having a protracted arguement with HL at the moment as if for what ever reason your account gets block you HAVE TO receive a code to release in the post .. I should be in the UK now but virus etc ...

I have already said to them I will be shifting my account to my other provider Halifax sharedealing .

[Rmac442]

Moving anything right now is probably not a good idea ..I have a SIPP with HL and the value has significantly reduced  ..nothing to do with HL ..but due to virus/market collapse ..yesterday down 3% !!!!

 

 

[stouricks]

3 hours ago, BritManToo said:

HJ are great ....... you only need a UK address just the once.

Used them for 10 years with no problems.

Is HJ a collaboration between Hargreaves Lansdown & A J Bell?   PML 555

[Oxx]

19 minutes ago, Rmac442 said:

Moving anything right now is probably not a good idea ..I have a SIPP with HL and the value has significantly reduced  ..nothing to do with HL ..but due to virus/market collapse ..yesterday down 3% !!!!

 

That doesn't make sense.  You can transfer out from HL in specie to your new SIPP provider (free of charge).  You remain fully invested all the time, so whatever the markets do to your investments they do, irrespective of where your investments are held at any given moment in time.

[topt]

12 hours ago, Oxx said:

You are going to need to lie about being resident in the UK to open any investment account in the UK.

Interestingly I noted in the latest interactive Investor charges sheet that they say they will charge "non UK residents"

https://media-prod.ii.co.uk/s3fs-public/pdfs/rates_and_charges_uk.pdf

Quote

Non UK Resident £3.99 a month We make an additional charge to cover additional operational costs for customers not resident in the UK

So is this just taking advantage where someone has moved abroad or will they accept non resident customers because quite frankly I would love to know what "additional operational costs" they have?

 

Just checked their terms of service and that does not say anything either way. The first page of applying for a Trading Account has drop downs suggesting other countries phone no. etc may be accepted..........

If someone needs an account then seems worth trying.

[treetops]

On 9/22/2020 at 1:01 AM, Oxx said:

Do check that your pensions are eligible to be transferred, and whether you'll need to use an IFA.  If you need an IFA you're probably going to find it virtually impossible to find one who will deal with you as non-resident in the UK.

He may also find it very difficult to find one who will do it all.  Increased liability insurance and fear of misselling claims means very few will do it nowadays.

[Sonnenjager]

Thanks for the input everyone. I will check first that all my pensions are eligible for transfer without requiring an IFA. That could be a hurdle if required.

[treetops]

10 hours ago, Sonnenjager said:

Thanks for the input everyone. I will check first that all my pensions are eligible for transfer without requiring an IFA. That could be a hurdle if required.

The important criteria (IMO) is whether they're defined benefit pensions, as opposed to defined contribution ones, and whose transfer value is over £30,000 GBP.

[Oxx]

20 minutes ago, treetops said:

The important criteria (IMO) is whether they're defined benefit pensions, as opposed to defined contribution ones, and whose transfer value is over £30,000 GBP.

Except pensions managed in the UK are going to be managed against GBP.  If GBP drops 30% against other currencies (as it has done many times), then the OP suffers a dramatic loss of value/income.  It only makes sense to maintained a defined benefit pension if one's expenditure in retirement is going to be in GBP.

[treetops]

7 minutes ago, Oxx said:

Except pensions managed in the UK are going to be managed against GBP.  If GBP drops 30% against other currencies (as it has done many times), then the OP suffers a dramatic loss of value/income.  It only makes sense to maintained a defined benefit pension if one's expenditure in retirement is going to be in GBP.

Agree, but where to put it would be the next discussion after getting it out of the DB pension which would be the first stumbling block if it's the case.