Category Archives: Pensions

Industry Experts Offer Advice on Cyber Threats and Imminent Pension Crisis

Free business seminar focusing on the UK and global economies

A TEAM of industry experts is coming together to provide an overview of the UK economy with speakers discussing recent cyber security breaches, impending pension threats and the performance of global investment markets.

Quantum Advisory is hosting the Breakfast Seminar on Thursday, 13 July at the Celtic Manor Twenty Ten Clubhouse and will have specialist speakers breaking down recent economic episodes and forecasting what could be coming next.

Chris Heirene, Partner and Head of Information Security at Quantum Advisory, will review a recent cyber security breach as a case study for incident management and provide simple steps all organisations can undertake to create a cyber security framework to minimise the chance of a breach occurring.

Paul Francis, Principal Investment Consultant at Quantum Advisory, will focus on how investment markets and UK and global economies have been performing and provide an insight into what could happen over the short to medium term.

Stuart Price, Partner and Actuary at Quantum Advisory, will conclude the event by advising on the potential pension crisis that could arise due to an ageing population, the decline in defined benefit pension schemes and inadequate defined contribution pension savings. Stuart will explore ways this could be averted.

The event is free to attend for all professionals including those in finance, HR and pensions as well as individuals with an interest in the featured topics. Registration and pre-networking starts at 8am, with the seminar covering 8.30am to 9.45am, followed by refreshments and networking. To book your complimentary space email events@qallp.co.uk.

For more information about Quantum Advisory please visit quantumadvisory.co.uk.

 

Image (L-R): Paul Francis, Chris Heirene and Stuart Price

Annuity sales are up but shop around for the best deal

Annuities are back in focus but it’s vital people don’t just get sucked in by the headlines and shop around for the best deal, warns Steve Butler, CEO at Punter Southall Aspire.

New data from the Association of British Insurers (ABI)[i] has revealed that sales of annuities surged 22% in Q1 2023 compared with the last quarter of 2022 – with 16,256 annuities bought – the largest number recorded since Q3 2019.

ABI also show more people are shopping around and switching provider for the first time since 2016, with more than 10,000 people buying an annuity from a different provider to their pension company, making up 64% of sales and totalling £847 million.

But ABI say one in three retirees are not switching from their existing pension provider and could be missing out on extra income[ii].

 

Steve said: “Annuities fell out of favour in 2015 when pension freedoms law created more flexibility in the retirement income market. In truth, rock-bottom interest rates at that time made them far less attractive in any case.

“Fast forward to 2023 and they make sense as interest rates rise, offering some certainty in a very uncertain time. Broadly, as interest rates rise, so does the value of an annuity. They are now at their highest level for 14 years, which does make them look more attractive.

“Their appeal is that they offer a guaranteed income for life which is a vital part of retirement planning. However the difference between the best and worst deals can be tens of thousands of pounds over a lifetime, so people need to be careful when purchasing an annuity and not just get carried away as they are back in fashion.”

 

ABI highlights that the gap between the top and bottom providers has widened – with a healthy 65-year-old now able to secure nearly 14% more annual income by securing the best instead of the worst rate[iii].

 

Steve adds: “Whilst it’s encouraging that more people are shopping around our message remains the same – everyone buying an annuity should be checking EVERY annuity on the market. People should never accept just one quote from their existing provider out of misplaced loyalty.

“Technology has made it extremely simple to check the whole of the market and there is a wealth of guidance and tools out there, such as our online calculator Pension Potential which searches the entire market and can show people how much their pension can buy, making it easy to see the right deal for them.

“Shopping around can significantly boost retirement income and just like people are now used to shopping around for insurance we encourage them to do the same at retirement. It could result in literally thousands more in retirement income, for a few minutes spent searching.”

 

[i] https://www.abi.org.uk/news/news-articles/2023/5/annuity-sales-surge-after-turbulent-2022/

[ii] https://www.professionalpensions.com/news/4116689/sales-annuities-hit-highest-volumes-years

[iii] https://www.professionalpensions.com/news/4116689/sales-annuities-hit-highest-volumes-years

Half of employers fail to offer retirement support to staff beyond paying into pensions

Over half (51%) of employers fail to offer any additional support to employees approaching retirement beyond contributing to their pension, according to a new survey amongst over 1,176 HR professionals from Punter Southall.*

Researchers found that while a third of employers said they are unhappy about the level of retirement support they currently provide to employees, the majority (96%) would consider offering help to improve employees’ retirement income if it were free of charge.

 

Punter Southall Aspire CEO Steve Butler said: “Our survey found pensions are considered the number one employee benefit. However, many are just not saving enough, and their pension pot may not be sufficient for the life they anticipate.

“For those approaching retirement there is a huge advice gap too, with many over 50s not seeking help despite money worries.

“Employers have an opportunity to address this. They are in a position to encourage people to save more and support those heading towards retirement with financial education or digital tools that can help people plan for their future with greater confidence.”

 

This view chimes with the government’s Money and Pension Service,[i] which has produced a 10-year strategy to improve the nation’s financial wellbeing. One of the five ways they want to drive change is through people engaging with their future and being empowered to make informed decisions for, and in, later life.

 

Steve added: “We urge employers to get behind this government strategy. While budget can be a barrier in the current economic climate, there are free tools and support services available, which can be a cost-effective way for employers to start offering support and advice, helping their workforce better plan for their future.”

 

The Institute for Fiscal Studies (IFS) also found 90% of people are not saving enough for their retirement[ii] – less than the 15% of earnings suggested by a previous Pensions Commissions report[iii].

[i] https://moneyandpensionsservice.org.uk/wp-content/uploads/2020/01/UK-Strategy-for-Financial-Wellbeing-2020-2030-Money-and-Pensions-Service.pdf

[ii] https://inews.co.uk/inews-lifestyle/money/pensions-and-retirement/retirement-expert-pension-advice-saving-enough-2286115

[iii] https://ifs.org.uk/news/major-new-pensions-review-warns-substantial-risks-finances-future-generations-pensioners

Get me out of this LDI shaped hole

Written by Katherine Lynas, Senior Consultant at Punter Southall’s Pension Safeguard Solution

It is now clear that the effect of the LDI crisis on Defined Benefit (DB) pension schemes was not uniform. The amount of hedging a scheme had in place had a material impact on the position it found itself in after the market volatility had subsided. Schemes that were under hedged were able to capitalise on the surge in yields and emerged as the “winners”. Conversely, some schemes remained mostly unaffected, while others experienced a decline in their funding position following the mini budget, as yields rapidly increased, and LDI managers were unable to secure capital swiftly enough to address the issue, leading to reduced hedging levels.

Irrelevant of what experience schemes had over the LDI crisis, a large majority will have had to increase capital in their LDI funds and this will have had significant implications for their investment strategies. At a high level the challenges can be broken into two themes:

1. Maintaining the hedge ratio

As well as having to post capital to maintain the hedge ratio over the LDI crisis, schemes are now faced with lower leverage ratios in their LDI funds. To maintain their hedge ratio they need to allocate more assets to their matching portfolios which simply means they have had to sell growth assets, reducing the amount of assets in their growth portfolio.

A further drain on growth assets is the need to provide a bigger liquidity buffer for collateral calls. The liquidity buffer needs to be invested in easily realisable assets, which tends to mean high grade fixed interest strategies which can be sold quickly and also that the assets are held within the same investment house as the LDI provider.

2. Maintaining the scheme’s return target

All this re-allocation to matching assets will have had a material impact on the ability of the remaining growth assets to meet the current return target.

It may be that the scheme’s funding level has improved and therefore it is possible to de-risk and target a lower return objective, but where that is not the case schemes are left with an unenviable choice of increasing risk to target a higher return, reducing the return target or turning to the employer for help. Obviously, none are ideal, if even possible.

The struggle many schemes are facing to find the right balance between growth and matching portfolios in this new post LDI crisis world has, as frequently is the case in our industry, created a new term – the denominator factor.

The denominator factor is made even more challenging for some schemes as the reduction in the market value of assets over the LDI crisis and the sell off of a large proportion of the liquid growth assets to support the LDI funds has left some schemes with an overly large proportion of assets in illiquid private market assets. This creates a third challenge for schemes:

3. Maintaining liquidity

Liquidity is needed in a scheme to provide pensions when a scheme is cash flow negative (higher withdrawals to pay pensions than contributions in), provide LDI buffers and collateral calls, and as a scheme gets closer to buy-out, to provide the appropriate assets to the insurer.

For many schemes the need for liquidity will now have emerged to have an equally important role alongside maintaining the hedge ratio and return targets.

Several market participants are trying address schemes’ need to liquidate private market assets and the secondaries market is seeing a strong flow of high-quality opportunities off the back of pension schemes selling off their private market investments. The point to note here is that the case for investment in private assets is still compelling for many, but not if you are a DB pension scheme close to the point of buy-out where your bulk annuity provider is not willing to accept your private market assets or one where the scheme dynamic has changed so significantly that you do not have another source of cash to maintain your hedge or pay your pensioners.

Is there more to come?

The last three years have been extremely tumultuous for DB pension schemes, but there will be more challenges ahead and they could be as daunting. Some we are aware of like climate transition threats and opportunities, or gilt issuance versus demand creating further pockets of market stress. But one we are, as an industry, already into much of the detail of is the new DB funding regulations and accompanying Code of Practice.

This will add to the considerations schemes must weigh up when devising their investment strategy and journey plan. In particular, at the point of significant maturity schemes will be required to de-risk.  Some schemes may already be at that point but not be funded sufficiently to adopt such a low-risk investment strategy. Their only option may be to turn to their employer for support.

Scheme duration is also likely to change as UK life expectancy at retirement has fallen. This will bring many schemes’ durations down, maybe closer to the 12 year liability duration currently being touted as the point at which schemes will need to adopt a low dependency investment strategy.

Schemes turning to their employer for support has been mentioned several times already and covenant assessment is a building block of the new funding code. Most schemes have reduced in market value post the LDI crisis which has improved sponsors’ affordability resilience but as UK and other developed nations remain on the cusp of recessions, how reliant can schemes be on their employer?

Practically, what does this all mean?

The pension world has always been complex and ever changing but the LDI crisis has resulted in a step change in our industry. For some schemes it has been a really positive outcome and they are queuing up at the insurers’ doors but for many there are just more balls to juggle and some of those balls are spikey.

Most schemes and their advisers have been very busy addressing the immediate denominator factor issues post October’s market volatility but are now firmly looking at the challenges coming down the pipe. Governance structures are becoming a focus as trustees seek more support and expertise in addressing the renewed complexity. But for some, hiring a professional trustee or appointing a fiduciary manager will not address the underlying issue that they just don’t have enough of the right type of assets to get them out of the hole they find themselves in post Trussonomics and onto an end game with any certainty.

Are there solutions to help?

There are a range of solutions, at various stages of development, which consulting firms and asset managers are bringing to the market to try to support schemes facing these challenges. They range from co-investment vehicles which allow the sponsor to benefit alongside the scheme, to superfunds which sever the covenant and consolidate the scheme into their structure.

Capital backed solutions provide a capital buffer to augment the schemes’ assets and provide a reservoir for liquidity needs, the ability to target a risk-on investment strategy and, with some solutions, maintaining the existing robust governance structure.

Some solutions go even further by addressing the wider risks that schemes face alongside these  newly created challenges by enhancing the employer covenant and reducing the likelihood of contributions being required from the employer in the period until buy-out is achieved.

With all these alternatives there are pros and cons and no one solution fits all, but if you are connected to a scheme which is facing liquidity, return or hedging challenges and can’t identify an immediately obvious solution, they are worth investigating. The step change resulting from the LDI crisis and the headwinds some schemes are and will continue to face, demands a new type of solution.

 

Lower life expectancy could boost annuity income to help retiring employees

Industry experts have highlighted that the most significant decrease in life expectancy, for a decade could put annuities in a more favourable spotlight as a retirement option.

While this development may translate into more generous annuity values being offered, thousands of people are not prepared for retirement, according to a new study from The Wisdom Council called ‘The Great Retirement Study’.

The research shows many 55 to 75-year-olds need guidance to understand their options, with almost one-third feeling ‘not at all confident’ or ‘not very confident’ about having enough money in later life.

Punter Southall Aspire chief commercial officer Alan Morahan said higher interest rates mean annuities are now in a more favourable spotlight, but financial planning is vital to help to put their value into context.

He said “Employers can play a more significant role to support staff approaching retirement. Our own survey found just over half of companies offer no guidance on how to plan for life after work, while just under a third offer some help. Only 12% pay for consultants to assist their workforce. The advice gap remains a canyon employers could easily fill to help tens of thousands more approach retirement with confidence. Despite the headline of shorter life expectancy, many heathy people could spend upwards of 30 years in retirement. Employers have an important role to play, from those just starting out who need to be encouraged to save more, to those approaching retirement who need help with often very complex decisions.”

Punter Southall Aspire is helping plug this gap with Pension Potential an online tool free to employers to help staff assess how large a retirement income their pension can buy for retirement by comparing every annuity on the market. It also offers a picture of what drawdown can look like or a mix of options.

Vidett welcomes TPR’s Guidance as a stepping stone for EDI Improvement, but calls for further action

The Pensions Regulator (TPR) has recently published equality, diversity and inclusion (EDI) guidance for pension scheme governing bodies and employers.

TPR said in a statement that they hoped the guidance, developed with an industry working group, will be used by pension scheme governing bodies and sponsoring employers to improve the EDI of their scheme’s board.

Simon Lewis, Client Director, from professional trustee and governance experts, Vidett, welcomed the guidance, saying:

The recent guidance from The Pensions Regulator (TPR) on equality, diversity, and inclusion (EDI) for pension scheme governing bodies and sponsoring employers is a much-welcomed addition to the industry. This guidance serves to improve the EDI of scheme boards, legitimising what many of us in the pensions industry have been discussing with colleagues and boards for some time now.

Guidance sets clear expectations on the way forward

TPR’s recommended quick wins include advice for Chairs; having an EDI policy; enhancing board diversity; reviewing fixed-term appointments; making reasonable adjustments for candidates and trustees and ensuring inclusive communications. We believe this is a step in the right direction and will no doubt encourage more discussion and action.

However, this guidance couldn’t have come soon enough. Recent research has emphasised urgent action was needed to improve EDI on pension boards.  A report commissioned by Cardano and Mallowstreet found pension trustee boards remain overwhelming male and white[i]. By contrast they found that professional trustee firms fared much better when it comes to diversity and were also leading the way in EDI training and policies relating to bullying and harassment[ii].

More concerning is the fact the survey also found that over half of respondents (58%) believe that improving EDI is low priority compared to other governance issues, in spite of the fact that 63% recognise it as a useful way to broaden a team’s skill sets as well as improve governance and decision-making for better member outcomes[iii]. There is therefore still some way to go to change the pension landscape.

TPR’s guidance clearly emphasises some good practice which is already happening in the pension industry. One good example is the Member Nominated Trustees (MNTs) selection processes being simplified and made more inclusive with plainer English being used for communications. It also echoes the indirect and direct EDI references in the General Code (formerly Single Code) in relation to the Role of the Chair and the Governing Body (Trustees), MNTs processes and the appointment and removal of Trustees, Adviser selection, communications.  This is all very positive.

Moreover, updated guidance on delivering effective communications to support the DC Code of Practice is now available. Although this guidance is specifically focused on DC schemes, the best practices outlined within could equally apply to DB schemes. It would be beneficial to incorporate this guidance into the final version of the General Code. As trustees, it is key that we prioritise our members’ interests and avoid creating distance with technical language and passive communication styles. Our goal should be to communicate in a clear and concise manner that prioritises the needs and concerns of our members, many of whom will be classed as vulnerable or people with disabilities such as a proportion of DB scheme pensioners.

There are several innovative ideas and practices that warrant further consideration by boards, such as treating Employer Nominated Trustees (ENTs) selection in a similar way to Member Nominated Trustees (MNTs). Additionally, employing skills reviews that examine an individual or a board’s collective experience, characteristics, and skills beyond pensions, as well as providing reasonable adjustments for trustees when conducting their duties, are essential considerations.

Policy, objectives, and performance reviews are critical to success and embedding EDI into the Trustees’ Effective System of Governance (ESOG). While the guidance does not provide a specific definition of EDI, it encourages Trustees to consider it for themselves. This consideration should align with the scheme’s nature, size, scale, and complexity (per the General Code), as well as its membership and the sponsor’s ethos.

In terms of employer guidance, sharing these concepts with scheme sponsors can support the recruitment of ENTs and MNTs. This effort could also involve discussing the support that the sponsor could provide from their own EDI initiatives if the trustee is willing to invest more time and effort in this area.

Playing our part

The TPR guidance has two focus points; the governing body (Trustees) and how it operates in this space, with the larger emphasis on the diversity aspects, and secondly, Advice for Employers. As an organisation we’re mainly concerned with the first part, while helping facilitate the latter wherever needed.

Trustee boards and their sponsors now have a duty to consider EDI on an ongoing basis and should focus on learning, evaluation, and action. We firmly believe part of this is ensuring that it is included in the ESOG framework being developed as part of the upcoming Code, so it becomes embedded in the culture and a key part of the Trustees’ key risks and internal controls.

As a professional trustee and governance firm this equally applies to our recruitment, development, and training approach, and is something we are working hard at. As well as being trained and equipped to help current and prospective clients – our positions as independent trustees, chair and secretaries give us a wide universe of experience to draw upon. We also draw upon a pool of varied individuals on the team and access to a large pool of specialist scheme advisers which help provide a more holistic view on topics. This all helps with ensuring EDI is present on our sole trusteeship clients as well as the non-sole trustee boards we are involved with.

One point worth noting here is in the TPR guidance is that “E” stands for “equality”. At Vidett we focus more on “equity”. There is a difference, and we suggest that the literal view of treating everyone the same isn’t necessary “fair”. A better approach may be acknowledging differences and offering support where needed to give equal access and opportunity.

The practical steps set out in the guidance do allude to being equitable in places, but we suggest that perhaps this could be more up front.

Beyond the guidance

In addition to the guidelines provided by the Pensions Regulator (TPR), trustees and scheme sponsors could broaden their focus to consider other critical areas such as investments and their alignment with environmental, social, and governance (ESG) principles, ongoing work on scheme rules and valuations, and the employer covenant, even though the latter is still in its early stages.

To make progress in this area, it is essential to integrate EDI considerations into the Trustees’ day-to-day operations, rather than treating them as an afterthought or a separate governance burden. We commend the TPR and all those who participated in the discussion and made recommendations. Our goal is to transform these recommendations into concrete action.

 

 

[i] https://www.responsible-investor.com/uk-pensions-dei-landscape-has-to-change-says-the-pensions-regulator/

[ii] https://www.responsible-investor.com/uk-pensions-dei-landscape-has-to-change-says-the-pensions-regulator/

[iii] https://www.cardano.co.uk/industry-insights/diversity-pensions/

Vidett boosts team by hiring Nicole Johannesen as Associate Director in Scotland

Vidett, the UK’s leading professional trustee and pension governance firm, has announced its first new appointment since its formation in February 2023 through the merger of Punter Southall Governance Services (PSGS) and 20-20 Trustees (20-20).

Nicole Johannesen has joined as Associate Director and will be based in Vidett’s Scotland office. As a qualified pensions actuary, Nicole brings over 9 years’ extensive governance and trustee experience combined with excellent communication and organisational skills.

 

Nicole began her career with Hymans Robertson, where she worked in various pension roles and was the lead consultant on two of Hymans Robertson’s scheme management and pension governance clients, including their largest appointment.

She has a proven track record of building strong relationships and bringing stakeholders together to develop practical solutions. Additionally, she is passionate about diversity, equity, and inclusion (DE&I), and has actively driven progress in this area throughout her career.

 

On joining the company, Nicole said: “I’m delighted to be joining Vidett at such an exciting time, following the merger of 20-20 Trustees and PSGS. It is a privilege to be joining such a dynamic and friendly team of professionals and I am looking forward to collaborating with my new colleagues and clients over the coming months.”

 

Naomi L’Estrange, Co-Chief Executive at Vidett said: “It is great for Nicole to be joining at a hugely exciting time – she is coming on board as our first new recruit since forming Vidett and takes our team in Scotland up to five.

Nicole brings invaluable actuarial and governance experience to our team and clients. She’s also going to get involved in developing and improving our board effectiveness offering which we see as increasingly important area for a trustee and governance business. We wish her every success in her new role.”

 

Nicole is a member of the Chartered Enterprise Risk Actuary (CERA) and Fellow of the Institute and Faculty of Actuaries (FFA). She has a first-class Master of Mathematics degree from the University of St Andrews.

 

Vidett is a privately owned business, independent from any other provider of services to corporate pension and employee benefit schemes. With an unrivalled knowledge bank to support client needs, Vidett currently looks after over 475 clients with total assets in excess of £142bn and over 2.5 million scheme members.

 

Pension reforms: a £10k step in the right direction to unravel the Great Retirement

Punter Southall Aspire CEO Steve Butler said the move to increase from £4,000 to £10,000 the amount you can save into a pension once you have taken out more than the 25 per cent tax-free sum is good news for older workers.

He said: “A significant number of people who left the workforce after the pandemic were 50-somethings who could access their pensions. In doing so, they slashed what they could save tax-free each year by ten times.

“Reinstating what’s clunkily known as the money purchase annual allowance to £10,000 – what it was in 2015 – gives those people who want or need to come back to work a clearer path to contribute towards an eventual retirement in a labour market that continues to transform.

“More people are working flexibly, starting new ventures or new careers even later in life and funding it from their own pocket. Pension tax needed to change to reflect this reality. I’m glad it has because this means they can continue to be self-reliant and save meaningfully while continuing to contribute to the wider economy. Isn’t that a win-win?

“The allowance was reduced to stop people recycling the tax-free limit ie using it more than once, but how many people seeking to stay economically active do so with that in mind? Very few, I would wager, and the extra tax they generate while extending their working life will, I predict, more than make up for the relatively small proportion which may be recycled.”

Pension auto-enrolment expanded to include younger and lower paid workers

The hugely successful pension auto-enrolment scheme is being widened to include all workers from the age of 18 (currently from age 22) and the minimum earning threshold of £6,240 per annum is to be abolished so that the first pound of earnings will be used for pension contributions.

The Department for Work and Pensions announced the changes this month which will unlock the initiative to millions more workers, allowing them to benefit from employer contributions and tax relief on pension contributions. Although no formal date has been set for the revised rules, they are expected to come into force from April 2024 and industry experts are praising the proposals.

Partner and Pension Actuary at Quantum Advisory, Stuart Price, said: “Auto-enrolment is one of the most effective formats implemented within the pension industry. Since its inception in 2012, employee participation in a workplace pension has increased in every industry with pension contributions rising from £41.4billion in 2012 to £62.3billion in 2021. Younger workers will likely see the most benefits; profiting from compound interest growth while also forming a solid foundation of saving for retirement as soon as they start their working lives.

“Despite its success and these latest changes, more still needs to be done, including allowing the self-employed to access the scheme and raising contributions paid in by both employees and employers. The latter might not be a vote-pleaser, but the current combined contribution of 8% of salary is too low and will not provide recipients with enough money to pay for a comfortable retirement.

“That being said, this latest Bill is certainly a big step in the right direction and helping to prioritise pensions for all.”

For more information about auto-enrolment visit: https://quantumadvisory.co.uk/

 

Planning for the Future? A Guide to Choosing the Right SIPP Provider

A SIPP is known as a self-invested personal pension. Using SIPP means you are afforded benefits such as independent control and privacy to decide how and what to invest in. With SIPP, you also get the chance to have control over your investment plans whilst being able to save towards your retirement. SIPP proves to have a lot of benefits.

However, to make the most of it, you need to be assertive about the first step, choosing the right SIPP provider. Getting this part wrong would significantly affect how you can invest and if you can manage your investments effectively.
Here are some tips that can help you choose the right SIPP provider.

Research to Understand Your Investment Options

Investing using a SIPP can prove advantageous due to having a wide range of investment options like bonds, stocks, and other assets. This can seem quite overwhelming, although it’s beneficial. You will need to understand what you want your investment strategy to be like, and this is where research comes into play.

One way to conduct research is by checking out reviews about investment services like interactive investor; this investment service is known to have low-cost investment options. Reviews showcase a wide range of online investment platforms that offer SIPP services and can provide you with access to their investment tools and resources. Investment services allow you to access real-time market data, news and analysis, and financial reports. Doing this will help you choose a SIPP provider that aligns with your investment objectives whilst exploring factors such as your risk tolerance and the benefits of the options you are presented with.

Source: Unsplash

Keep an Eye Out for Low Charges

After conducting your research and wanting to invest using a SIPP, you will need to be mindful of charges. You need to know the kind of SIPP that would benefit you financially. Charges are usually paid to SIPP providers to ensure proper management of your investments. As stated by investment sense, these charges could either be paid in flat fees or a percentage of the amount you have invested will be removed to pay the charge.

However, costs vary, so some providers may offer certain waived or discounted fees, so make sure to ask about any possible way for you to save costs.

Consider the Availability of Customer Service

To choose the right SIPP provider, aside from knowing the charges, you should consider if they have excellent customer service and support system. Customer support, as seen by ipm pensions, is meant to be offered by all SIPP providers to their customers. When a SIPP provider has responsive customer service present, this will help relay their intent to maintain accessibility, especially if their platform is very user-friendly.

Also, consider if the SIPP provider offers investment or investment guidance educational resources. This would also go a long way to help you find your footing when it comes to using IP.

Source: Unsplash

Choosing the right SIPP provider will greatly influence your investment goals and savings management.

By researching your investment options, watching out for low charges, and considering the availability of customer service, it will be easy for you to choose the right SIPP provider that will align with the investment goals you’ve set for yourself.