Terry Jones moved quickly to transfer an old stakeholder pension with Aviva to an Interactive Investor SIPP in February as he had suspicions that Covid-19 could start impacting markets.
Terry, 64, says he had been meaning to switch his pension for a while but not quite got around to it. He decided he needed his retirement savings to be in a type of pension where he could make fast trades to deal with any market volatility. ‘With my stakeholder pension any changes would take about a week to be implemented which is six days too long when markets start to become choppy,” he says.
“I chose Interactive Investor as my SIPP provider after my own research showed it was very good value at £19.99 a month and extremely flexible in terms of buying and selling. I also liked that there’s no fee on holding exchange traded funds (ETFs) which I like to trade in.”
Since my old pension was costing me around £2,000 a year in fees I’m making savings already.
Terry says the transfer was smooth and just in time before the markets crashed. “I was able to put my money in cash before I made any huge losses. I am buying (ETFs) regularly - sometimes selling the same day when they have risen by a percentage point or two, which is gradually increasing the value of my fund.
“I plan to select a more permanent home for my money when the markets settle a little. I’ve always been very happy to select my own investments rather than spending money on an adviser.
“Since my old pension was costing me around £2,000 a year in fees I’m making savings already.”
What advice would you give to your younger self around pension savings?
“I was very lucky to have started in a job at the age of 20 where I was placed in a final salary pension scheme. After that I worked for smaller firms with less generous schemes and mediocre default funds. I should have been more proactive at that stage at choosing how my money was invested.”
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Open a SIPP by 31 August 2020 and pay no SIPP fee until April 2021. This means your service plan fee covers you for all of your investment accounts. Following the offer period, the ii SIPP fee is only £10 a month more. Terms apply
£0 SIPP fee promotion terms and conditions¹
- No SIPP fee shall be charged to all new ii SIPP accounts until April 2021 (the “Offer”) that are opened from and including 3 March 2020 to and including 31 August 2020¹ (the “Offer Period”). This shall include instances where a participant has submitted a full and complete application for a new ii SIPP account during the Offer Period but the account is not yet opened, where such delay is not attributable to the acts or omissions of the participant.
- The Offer is open to new and existing customers.
- These terms and conditions should be read in conjunction with the ii SIPP Terms. In the event of a conflict between these terms and conditions and the ii SIPP Terms, these terms shall prevail.
- After the Offer has ended, the SIPP fee you will be required to pay will be as set out in our Rates and Charges.
- All other fees, for example a drawdown fee which is applied once you start to take retirement benefits, are not subject to this Offer and shall continue to apply notwithstanding.
- We reserve the right to alter, withdraw or amend this Offer and/or these terms and conditions at any time without prior notice.
- All participants to this Offer agree to be bound by these terms and conditions.
- Interactive Investor Services Limited (“IISL”) is the promoter of this offer. The registered office for IISL is Exchange Court, Duncombe Street, Leeds LS1 4AX.
¹ Updated 31 July 2020