The Unbiased Novia Global SIPP Review 2024
LEARNING OBJECTIVES
We’re passionate about providing free, high quality and up-to-date financial information to Expats around the world.
IN THIS ARTICLE, YOU WILL LEARN THE FOLLOWING:
Who are Novia Global
What is their International SIPP
The merits and drawbacks of the Novia Global SIPP
Who can benefit from the product
Our comprehensive verdict
This article is intended for British Expats with UK pension accounts.
Below is a comprehensive and in-depth review of the Novia Global SIPP. For a more concise International SIPP overview, please see our dedicated SIPP page.
Novia Global SIPP Review 2024
The Novia Global UK SIPP launched in June 2020. It is a Self Invested Personal Pension operated by Novia Global. It is used in conjunction with the Novia Global platform.
The SIPP is a type of pension product. It offers a variety of investment options, including stocks, bonds, funds, and individual shares.
The Novia Global International SIPP is a product specifically targeted to UK Expats around the world. The SIPP allows Expats to consolidate and manage their UK Pensions abroad.
Extensive Fund Range
Within the Novia Global UK SIPP, you have your own investment account GIA (Global Investment Account). You gain access to an extensive array of over 7000 funds, providing you with a diverse investment landscape. Here are some of the key offerings available:
Exchange-Traded Funds (ETFs)
You can invest in ETFs, including index funds, offered by reputable providers such as Vanguard and iShares. These range of funds offer a cost-effective way to diversify your portfolio.
Mutual Funds
The platform features mutual funds from respected providers like Fundsmith and Scottish Mortgage Investment Trust. These funds offer a broad range of investment options including single strategy funds to meet your specific objectives.
Discretionary Fund Managers
Novia Global UK SIPP provides access to Discretionary Fund Managers, including LGT Wealth Management. DFM’s can assist you in managing your investments according to your risk tolerance and goals.
Multi-Currency
Novia Global UK SIPP allows you to invest in all major currencies. Currency options are available including Hong Kong Dollars HKD and Australian Dollars AUD and Swiss Franc CHF. However, the most extensive fund ranges are typically in USD, GBP, Euro.
Full Flexible Access for Expats
The Novia Global UK SIPP is a UK pension that allows you to access your pension funds in a flexible way. Notably, this enables flexible access draw-down, which allows you to tailor your pension withdrawals to your specific financial requirements.
Post Brexit, most traditional UK pension providers (Scottish Widows, Aegon, Aviva etc.) no longer allow non-UK residents full-flexible access draw-down. This is one of the main reasons an International SIPP may be used in an offshore or international retirement strategy.
Novia Global has recently introduced the automated monthly draw-down feature. This means that you have the freedom to withdraw funds from your pension on a schedule that suits your needs. Whether you prefer monthly, quarterly, bi-annual, or occasional withdrawals, this feature accommodates your preferred timeline.
Tax Benefits and Treatment
The Novia Global UK SIPP provides tax advantages like other UK pension plans, ensuring your financial safety and tax effectiveness. Here are the key tax advantages associated with this pension:
Tax-Free Growth: Your investments within the Novia Global UK SIPP experience tax-free growth. No country taxes the profits or money made from your investments in the pension. This applies as long as they stay in the pension.
Tax Free Lump Sum: UK residents can receive a tax-free lump sum of 25% when they start their pension. This is known as the Pension Commence Lump Sum (PCLS)
UK Tax-Free Withdrawals via Nil Rate Tax Code (NT): You can take money out of your pension without paying any UK taxes by using an NT code. This allows you to access your pension income without incurring additional tax liabilities.
Beneficiary Provisions: In the event of your passing before the age of 75, you can pass on 100% of your pension pot to your chosen beneficiaries free of UK inheritance tax.
Relocation to the UK: If you return to the UK for retirement, the Novia Global UK SIPP operates through the PAYE system.. This allows for automatic deduction of taxes from your income, removing the need for additional tax declarations to HMRC.
Professional Management
The Novia Global UK SIPP can help to provide you with control over your pension investments. Your chosen financial adviser helps make this possible.
Risk Level
Together with your financial adviser, you have complete authority to determine the level of risk in your pension investments. This means selecting the level of risk you are comfortable with. By doing so, you can tailor your investment portfolio to align with your risk tolerance and financial objectives.
Fund Selection
Novia Global UK SIPP allows you, via your adviser, to select the specific funds that constitute your portfolio. You have the flexibility to include or exclude particular funds based on your investment preferences and objectives.
Low and Transparent Fees
The Novia Global UK SIPP is the lowest cost option for international SIPPs with a straightforward charging structure.
SIPP Costs
The SIPP costs £216 per year, which is the cheapest option available currently on the market.
Novia Global Investment Platform
The investment platform costs 0.34% per annum. This includes the custodian fee charged by Pershing, streamlining the cost structure and ensuring transparency in your investment expenses.
Together, the above constitutes the lowest cost International SIPP account available to Expats.
Security
There are significant advantages of utilising an International SIPP as opposed to an overseas Scheme. (QROPS).
The Novia Global UK SIPP operates with a strong focus on the security and safeguarding of your pension assets. Here's how it ensures the protection of your investments:
Assets Held in Trust
Similar to all UK pension schemes, the Novia Global UK SIPP holds your assets in trust. This legal arrangement serves to segregate your pension assets from Novia's own assets, providing a crucial layer of protection. In the event of unforeseen circumstances affecting Novia, your pension funds remain separate and secure.
Within the Novia SIPP, an independent trustee assumes the role of a fiduciary. This trustee acts with a legal and ethical obligation to safeguard your assets held within the SIPP. Their primary responsibility is to ensure the security and well-being of your pension investments.
Protection via the Financial Services Compensation Scheme (FSCS)
The Financial Services Compensation Scheme is a type of insurance in the UK. It helps customers of financial firms if the firm cannot pay their claims. The current compensation limit is £85,000 per person, per firm.
FCA Regulated
The Novia Global UK SIPP follows strict rules and regulations to protect investors, just like all other UK pension schemes. Here are the key regulatory aspects that enhance the security and reliability of the SIPP:
FCA Authorisation
All UK pension schemes, like the Novia Global UK SIPP, must be authorised by the Financial Conduct Authority (FCA). This process makes sure that the SIPP provider follows rules and behaves properly, protecting pension holders.
Strict Investment Criteria
The FCA sets out specific investment criteria that apply to SIPPs. These criteria serve as a protective measure, preventing investors from accessing certain high-risk or potentially fraudulent investment schemes.
Our Verdict
The Novia Global UK SIPP is a popular choice for most expats in the world of Self Invested Personal Pensions. Its superiority becomes evident when considering several factors, including cost, safety, servicing, and reputation. Here's why it shines as an exceptional SIPP option:
Cost Efficiency
The Novia Global UK SIPP offers a cost-effective solution for expatriates. The fees are affordable. The SIPP costs are low. The Novia Global Investment Platform fees are transparent. It allows you to manage your pension investments without high expenses.
Safety and Security
This SIPP priorities the safety and security of your pension assets. By holding your assets in trust, independently safeguarded from Novia's own assets, it provides a robust layer of protection. Additionally, the involvement of an independent trustee as a fiduciary ensures the responsible management of your pension investments.
Servicing
Novia Global UK SIPP places a strong emphasis on servicing and meeting the unique needs of expatriate investors. Its commitment to flexibility, accessibility, and a range of withdrawal options, including automated monthly draw-down, caters to your specific requirements.
Reputation and Trust
Over the years, the Novia Global UK SIPP has built a solid reputation for reliability and trustworthiness. Its track record and dedication to client satisfaction make it a reputable choice for expats.
To learn more about the Novia Global UK SIPP or to have a detailed discussion about your individual financial situation, feel free to get in touch with a member of our team.
The Wealth Genesis is the first Expat Adviser to charge the same flat-fee to all clients, regardless of investment or pension size. No more commissions, hidden fees and lock-ins.
9/10
‘Excellent, and still the best offering for most Expats’
+ Low Cost
+ Fully Regulated
+ Wide Investment Choice
+ Great Servicing
+ Quickest Income Payments
+ Slick Online Interface
- More Expensive Than UK Pensions
- Cannot Hold Individual Shares
FAQs
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There are over a dozen ISIPP providers that Expats can choose from, including Sovereign, Trireme, PSG and Hartley.
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For us, transparent costs and ease of use are essential when considering an investment provider.
Some providers have reputations for very arduous withdrawal processes, which can alienate policyholders. -
Any Expat outside of the UK, who does not have full-flexible draw-down with their UK pensions should consider transferring.
In reality, the International SIPP will usually be the best option, given the multi-currency options and investment selection. -
Transparency is everything when looking to work with someone to plan your retirement.
Red flags include:
- Opaque or confusing charging structures
- Promises of guaranteed returns
- Pushy sales tactics
Our advice is to take your time, do your due-diligence and not rush into any working relationship.
