If you have been following our guide to SIPPs and moving overseas, you will have learned about what SIPPs are and how they work in part one. Then, part two covered the benefits of using a SIPP to manage your retirement savings from outside the UK.
The final instalment will explain some important factors to consider when choosing a SIPP provider.
This decision is crucial and could affect the quality of the service you receive, the cost of managing your savings, and how easily you can draw an income in retirement.
To help you make the right choice, here are five important factors to consider when selecting a SIPP provider.
1. Regulation and authorisation of the provider
SIPP providers must be authorised and regulated by the Financial Conduct Authority (FCA) before they can operate a pension scheme.
Correct authorisation also means that up to £85,000 of your savings are protected under the Financial Services Compensation Scheme (FSCS).
It’s important to double-check that your chosen SIPP provider is correctly authorised. You can do this by checking the FCA register, which lists all authorised financial services organisations. If the provider is not on this list, you should not trust them with your savings.
MyExpatSIPP is a trading name of MES Financial Services Limited which is authorised and regulated by the FCA.
2. The fees and charges for managing your SIPP and making investments
SIPP providers charge administrative fees for managing the pension scheme, and you may also have to pay transaction fees when making investments.
While these expenses are unavoidable, some providers will charge more than others. It’s also worth noting that certain companies may have a complex fee structure, making it difficult to know precisely how much you’ll pay. This could make it more difficult to manage your retirement savings and you might lose more than you realise to high fees.
That’s why it’s crucial to fully understand the fees and charges associated with a given SIPP before moving your pension savings into it.
At MyExpatSIPP, we don’t believe in making things complicated for you. We have a very clear fee structure, meaning you won’t face any surprise costs or lose a significant portion of your savings to high charges.
3. The range of investment options
The way you invest your pension savings influences the growth you achieve. Ultimately, this affects the level of income you can draw in retirement and the quality of life you can maintain.
When choosing a SIPP provider, it’s useful to consider the range of investment options on offer, and whether they are suitable for your goals and attitude to risk. If your investment choices are particularly limited, this could affect your ability to generate growth.
We offer our MES Essentials SIPP with a single default investment fund for those who want to keep costs low and take a simpler approach to their investments.
Alternatively, you might opt for the MES SIPP, which offers thousands of different options from the world’s leading investment managers. You can choose from an extensive range of Individual Shares, Exchange Traded Funds (ETFs), Investment Trusts, Unit Trusts, and Open-Ended Investment Companies (OEICs)* to build a portfolio tailored to your needs.
*These must be traded on a regulated venue which refers to stock exchanges, multilateral trading facilities (MTF) or other trading venues, authorised by a financial regulator or a governmental agency either in the EEA or in a third country.
These extensive investment options mean you can effectively grow your savings and potentially build more wealth for retirement.
4. How easily you can access your savings
One of the key benefits of a SIPP is that you have more flexibility to manage and access your savings from outside the UK.
Each SIPP provider will have its own system for managing transfers and some will give you easier access to your savings than others. In retirement, you will likely be relying on your pension savings to cover your living expenses, so it’s important that you can withdraw funds easily.
You’ll also need to consider whether you can make withdrawals in different currencies to limit issues with exchange rates or currency conversion fees, and whether the SIPP provider will send payments to non-UK bank accounts
At MyExpatSIPP, we offer flexible withdrawal options in various currencies and can send payments to overseas bank accounts, making it simple for you to manage your retirement income.
5. Technological support and customer service
The cross-border pension landscape can be complex, so the level of technological support and customer service offered by a SIPP provider is crucial.
For example, consider how easily you can check your investments or the status of a withdrawal and make changes to your SIPP when needed. You’ll also benefit from regular support from the SIPP provider if there are certain tax rules or complicated pension terms you don’t understand.
That’s why our expert team is always on hand to guide you with your SIPP. Our online platform also makes it quick and easy for you to review and manage your pension savings without the need for excessive paperwork.
A SIPP is the ideal solution for taking control of your retirement savings from outside the UK
Hopefully, this three-part guide has given you a good understanding of what SIPPs are, why they’re so beneficial for retirement planning, and how to choose the right provider.
If you would like to learn more, you can email us at [email protected] or call 03303 202091 for more information.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
