The UK’s largest direct-to-consumer investing platform and stockbroker Hargreaves Lansdown has announced that it plans to introduce a new all-in-one investment plan for the firm’s Self-Invested Personal Pension or SIPP.
Hargreaves Lansdown Ready Made Pension
Hargreaves Lansdown hopes will remove “ a lot of the difficult decision-making” that clients face, when they try to pick investments to help them achieve their retirement goals.
The new all-in-one investment plan is designed to help people take control of their pensions even if they are not sure where to invest.
It is aimed at those who are comfortable putting their money into medium to high-risk investments to generate capital growth in their younger years.
Who will want lower-risk investments as they near retirement age, and who are happy to review their portfolio annually.
SIPP holders will be able to put the whole of their pension pot into the all-in-one investment plan if they are uncertain about where to invest, or they can diversify their portfolio through investments in other funds.
Hargreaves Lansdown hasn’t specifically said what the charges for the all-in-one investment plan will be but its vanilla SIPP product it charges a sliding scale based on the value of the investment in the SIPP.
Investments in funds incur charges starting at 0.45% per annum up to £250,000, then 0.25% between $250,000 and $1.0 million, and 0.10% on investments valued between £1.0 and £2.0 million. There is no charge on investment balances over £2.0 million.
There is a flat fee of 0.45% on SIPP Investments in equities, investment trusts, ETFs and bonds, but that charge is capped at a maximum of £200.00 per annum.
Hargreaves Lansdown hasn’t provided any details about the investment plans fund composition, style or investment objectives, at this point in time.
However, it has opened a waiting list for those who are keen to know more.
Pension investing can seem very daunting to the uninitiated, to the extent that it can turn potential investors off of the product.
So, a dedicated all-in-one investment plan, that aims to demystify the process of pension investing and building a retirement pot, is to be welcomed.
We will reserve judgment until we have had an opportunity to review the full details of the new product, but it’s certainly worth being aware that it’s in the pipeline.