Can I transfer my SIPP to a "Robo" provider and manage the investments myself?
03 July 2023
Question by Rich
I have a SIPP which is in drawdown, I have taken all the available tax free cash but I am not drawingdown any more money. It is currently managed by an IFA. Can I easily transfer it to a "Robo" provider and manage the investments myself?
Answered by Matthew Spence
That's a great question!
Yes, it is possible (but not always easy) to transfer and manage your pension investments yourself. However, it's crucial to approach this decision carefully and with caution, as good professional pension advice is often invaluable and becoming increasingly difficult to find.
Here are some steps to consider:
Research the Market: Start by researching the available Robo providers and compare their features. Ensure that the investment proposition aligns with your objectives, risk profile, time horizon, and capacity for loss.
Check Transfer Process: Contact your current pension provider and inquire about the process for transferring your pension to a Robo provider. Make sure to obtain written documentation detailing the process and requirements.
Consult with your IFA: I recommend you consider informing your current IFA about your intention to leave and manage your investments independently. They can provide insights into potential implications and areas you should consider before making the switch.
Understand Fees: Review the fee structure of your chosen Robo provider, including transaction fees, management fees, platform fees, and other related costs. Compare these costs with what you are currently paying to determine the premium associated with the ongoing financial advice element from your IFA.
Transfer Process: Once you have selected a Robo provider, they should guide you through the transfer process. Follow their instructions and provide the necessary information to complete the transfer. Make sure they can accept transfers from external schemes and your pension scheme.
Take Charge of Investments: After the transfer is complete, you will have the opportunity to manage your investments through the Robo platform. It's important to have a solid understanding of investment principles, risk management, asset allocation, and stay informed about market trends and potential impacts (such as the current interest rates hikes) on your investments. Stay updated on tax rules and regulations as they can change over time and affect your pension.
Taking these steps will help you consider the best course of action for managing your pension investments going forward.
I am an experienced financial adviser committed to helping individuals and families achieve their financial goals. With over 19 years of experience in the financial industry, I have had the privilege of assisting numerous clients in making informed decisions and securing their financial future.