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 January and pay no SIPP fee until August 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
Promotional SIPP offer terms and conditions
- No SIPP fee shall be payable on all new ii SIPP accounts opened on or after 1 October 2020 for six calendar months (the "Fee Free Period"). After the Fee Free Period has ended, the SIPP fee you will be required to pay will be as set out in our then current Rates and Charges.
- The Fee Free Period is open to new and existing customers who open a new ii SIPP account on or after the qualifying date.
- 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.
- All other fees associated with managing your ii SIPP account shall continue to apply.
- We reserve the right to alter, withdraw or amend the Fee Free Period and/or these terms and conditions at any time without prior notice.
- All participants opening an ii SIPP account on or after 1 October 2020 agree to be bound by these terms and conditions.
- Interactive Investor Services Limited (“IISL”) is the promoter of this Fee Free Period offer. The registered office for IISL is Exchange Court, Duncombe Street, Leeds LS1 4AX.