Vanguard SIPP launches at last

I really wish they’d lower the minimum regular monthly contribution, but it probably is one reason they can keep costs down.

I can see other platforms, like Fidelity, losing customers immediately, plenty of whom are invested or were going to invest in Vanguard funds anyway

https://www.vanguardinvestor.co.uk/articles/latest-thoughts/retirement/get-ready-for-the-vanguard-personal-pension?cmpgn=ET119UKCESIP0002

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Not sure I agree with your definition of ‘launched’!

Halifax still come out cheaper for many (larger) SIPPs, it’s worth running the sums.

Sorry, meant to type “launches”! Corrected now

A large SIPP is a problem I don’t have :joy:

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So I was about to compare just for some context to show at what point Halifax comes out cheaper. However now finding their charges PDF I’m not sure at what point they would be cheaper.

https://static.halifax.co.uk/assets/pdf/filestore/CostAndCharges.pdf

There’s a 0.5% per transaction cost for funds, I assume this would apply for rebalancing as well? And A £90 a year charge under 40k and £180 a year over 40k. And the common ongoing fund cost as well

I don’t know if the regular investment charge applies to funds too? I assume not.

But there are charges for basically everything else, once you get into a drawdown it’s an extra £180 a year, plus extra if you change it, plus extra if you run out of money, plus extra if you die.

There’s definitely a benefit with vanguard of what’s the charge ? 0.15% capped at £375 plus ongoing fund charge.

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Simple charges are a benefit in themselves, as it takes a lot of the effort out of decision-making.

I think it looks like vanguard is cheaper to begin with, possible Halifax is cheaper in the middle so long as you keep your transactions to a minimum, and then vanguard is cheaper again when your drawing down.

Halifax is £180 a year, and £2/purchase (you can only pick 4 dates a month at this price).

If you check the pdf it doesn’t seem that simple.

It’s £2 for regular investments (Not funds presumably, if so they’re even more expensive then), 0.5% of the price of the fund transactions, £12.50 for none regular transactions (not funds), plus the £180 a year over 40k you mentioned.

They mustn’t be explaining it well. You can buy funds for £2, a Halifax ‘regular’ investment can be a one-off.

But there’s a litany of other fees that you’ll run in to at some point, Vanguard’s fee structure is very simple. But if you’re just investing in a large SIPP, it’s worth keeping it in Halifax and then transferring to Vanguard once you’re ready to draw down.

So for funds, is it a £2 fee for regular investment or a 0.5% fee if you don’t set up a regular investment? As the latter would be far cheaper if your only doing <£400 transactions.

There fund charges are listed separately from their dealing charges.

Ignore the fund charges, these are the same whether you buy Vanguard funds via Vanguard or Halifax.

If you bought a Vanguard Life Strategy fund each month, and had 200k in your SIPP, Halifax would charge you £2 x 12 dealing fees, and £180 / yr account fees.
Vanguard wouldn’t charge you any dealing fees, but £300 / yr account fees.

The Halifax ‘regular dealing’ fee trick works great for share accounts, SIPPs and ISAs - you just have to buy once, and get a choice of 4 dates in the next month to trade.

Vanguard is simple and cheaper for many people - but Halifax (or iWeb) can work out better for larger SIPPs and should be considered.

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hm ok I think I was just confused with the wording. 0.5% is it yearly on the total value of the fund? Or only per deal that you make? As it’s quite expensive if it’s the former.

It’s all down to whatever fund you invest in. It’s not something that Halifax will charge you, the value of your fund will just adjust itself. I won’t say don’t worry about it (as it can be big!) but you’d normally ignore this fee when comparing SIPP providers.

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Ah I get it now. OCF plus transaction costs that’s general built in/spread within the cost of the overall fund as a whole when you pay the fees. Thanks for sticking with it :smile:

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Somthing I didn’t realise as well. I believe (correct me if I’ve read it wrong) the £375 fee cap on vanguard is on your entire vanguard account, not per savings vehicle.

So if you have a SIPP and ISA, the cap for both is £375 combined.

Pay one account fee

You can hold as many accounts as you like with us – holdings under your name in different accounts are treated as one. So you’ll only ever pay one account fee.

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Once you get down into the details, I think it’s a pretty decent offer. It’s frustratingly hard to compare providers quickly, so it’s great having more people giving their thoughts.

For me personally, simplicity is very valuable. Having a stocks and shares ISA and a SIPP treated as one account balance is really attractive. Not having to worry about whatever additional fee you may have forgotten about is great too… Particularly for a product you may have for decades.

Then the fees look pretty good as well.

I can see what they’re doing with this!

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With the SIPP now coming the account fee is particularly attractive if you already have an ISA as well as your in theory looking at halving that cost if you consider it per account. And the fact that there’s no fees for buying and seeking if you plan to have a more complex setup and rebalancing is attractive.

It really is, and it’s worth keeping in mind what extra costs are sometimes paying for. HL for example obviously have a number of other services to manage which may justify the extra cost to some people. But it’s very difficult if not impossible to really compare the costs without restricting what your looking at to small examples.

It would be nice to have some accurate way to seeing lifetime cost

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Virtually impossible…

Yeah it is unfortunate, it does mean people have to spend a bit of time doing the numbers. But maybe there’s something to be said for that.

Good news for vanguard is they’re almost certainly going to get both my S&S ISA and SIPP when that is released so I can top up my retirement savings.

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