If you are classified as a High Net Worth individual (HNWI) and are exploring retirement funding options, an Organon SIPP may be something to consider. 

Being an HNWI does not necessarily imply owning a luxury yacht in Monaco or having millions tucked away. 

In the UK, an HNWI is typically defined as an investor earning at least £100,000 annually or possessing over £250,000 in net assets.¹

The EveryInvestor team has delved deep, researching the company’s website, market platforms, and various other resources to bring you a comprehensive overview of the Organon SIPP provider. 

We aim to provide you with insights that will aid in making an informed decision about this retirement investment.

What Is an Organon SIPP and How Does It Work?

An Organon SIPP is a Self-Invested Personal Pension that allows individuals to have more control over their investment decisions and retirement savings.

It works by allowing individuals to choose from a wide range of investment options, including stocks, bonds, and mutual funds, to build their retirement portfolio.

Contributions made to an Organon SIPP are eligible for tax relief, meaning that individuals can receive tax benefits on their contributions.

Additionally, the investments within an Organon SIPP grow in a tax-efficient manner, as any capital gains or income generated within the SIPP are not subject to tax.

Overall, an Organon SIPP provides individuals with flexibility, control, and tax advantages when it comes to saving for retirement.

With an Organon SIPP, individuals have the freedom to choose how their retirement savings are invested, allowing for a more personalized approach to retirement planning.

Unlike traditional pension schemes, an Organon SIPP offers a wide range of investment options, giving individuals the ability to diversify their portfolio and potentially achieve higher returns.

The tax benefits of an Organon SIPP are also a key feature, as contributions are made with pre-tax income and any growth within the SIPP is tax-free.

This tax efficiency can help individuals maximize their retirement savings over time.

Overall, an Organon SIPP empowers individuals to take charge of their retirement planning and optimize their savings for a comfortable retirement.

Who Is Organon?

Organon Trustees is a well-established SIPP provider in the UK. 

They provide professional services with a personal touch, in contrast to what the company refers to as the ‘call-centre approach of mainstream service providers’.²

Brief History & Overview

Established in 2007, Organon Trustees emerged as a niche pension trustee company providing tailored SIPPs, SSAS, and property in pension funds.

Key Players in Organon’s Growth

Marc Gwynne, a founding director, oversees compliance and actively manages key accounts, business development, and complex cases. 

Adrian McKinnell, the other founding director, handles operations, leads the pension and property teams, and drives business development.³ 

Current Market Position

Organon Trustees specialises in bespoke SIPPs for High Net Worth individuals. 

The directors are actively involved in daily operations, and the company is authorised by the Financial Conduct Authority, promoting the upholding of regulatory standards.

What is the Breakdown of Organon’s SIPP?

A breakdown of Organon’s SIPP requires a review of the key features, benefits, and charges.

Key Features & Benefits

Key features and benefits of the Organon SIPP include diverse investment options, flexible withdrawals, and tax benefits. 

It also offers a customisable pension strategy for tailored retirement planning.

Costs & Charges

The costs and charges associated with an Organon SIPP encompass administration fees, investment charges, and potential advisor fees.⁴

The Organon SIPP has an annual admin fee of £395 and an initial setup fee of £250, both subject to VAT and paid upfront and annually (adviser fees excluded). 

Ensure you have enough cash in your SIPP bank account for fees, as insufficient funds may lead to Organon disinvesting from your SIPP to cover them.⁵ 

How Do You Compare Organon’s SIPP Offering With Competitors?

When comparing Organon’s SIPP offering with its competitors, it is important to consider factors such as investment options, fees and charges, and flexibility in withdrawals.

Hargreaves Lansdown

Organon serves a different market than Hargreaves Lansdown (HL), as the former is geared towards investors looking for the attention to detail of a smaller company.

On the other hand, HL caters to a larger cross-section of the population with 1,7 million clients.⁶

Vanguard

With Vanguard, you only need an initial lump sum contribution of £500,⁸ whereas you will need a pension pot of £200,000 with Organon.

Fidelity

Fidelity charges an annual service fee of 0,35% per year on investments under £250,000,⁹ while Organon charges a flat fee of £395 per year.

How Do You Start Investing With Organon’s SIPP Products?

Investing with Organon’s SIPP products provides you with a comprehensive and flexible approach to retirement planning.

Types of Investments Available

The types of investments available for Organon clients include UK commercial property, discretionary fund manager portfolios, fixed-term and notice cash accounts, among others.

Flexibility & Withdrawal Options

Flexibility and withdrawal options are built into the DNA of the Organon SIPP, giving you the advantage of tax relief on your contributions and growth that is tax free.

Once you start drawing a taxed pension, further contributions are limited to £10,000 annually, and any unused allowances from previous years cannot be carried over.¹⁰

Tax Implications

The tax implications range from tax relief on contributions¹¹ and tax-free growth on investments¹² to a 25% tax-free lump sum on retirement.¹³

Scottish residents have varied tax relief rates, and there are annual limits to contributions and tax relief.¹⁴

Who Is Organon’s SIPP Product Best Suited to?

Organon’s SIPP product is best suited to the retail investor with £200,000 to invest in a wide range of assets.¹⁵

Casual Investors

An Organon SIPP is probably not the best option for casual investors.

If it is something you do want to look into, you should consider this product with the assistance of an independent financial adviser.

Seasoned Investors

Seasoned investors with sufficient knowledge of the market can act on their own or appoint a regulated discretionary investment manager to handle their investments. 

This option allows experienced investors to benefit from the SIPP’s diverse investment options while relying on professional management.

Retirees

Retirees unsure about when to access their pension fund should consult an independent financial adviser. 

This adviser will evaluate the best retirement funding options based on individual circumstances and financial goals.

How Do I Open an Organon SIPP?

You can open an Organon SIPP by downloading an application form from the company’s website or making contact via email at newbusiness@organontrustees.co.uk, or by calling 0161 480 5157.

Who Is Eligible?

Anyone who meets the age requirement mentioned above is eligible, as long as their earnings are subject to UK tax or they are a UK resident for tax purposes.

What Is the Minimum Investment?

There is no minimum investment limit, but Organon requires a pension pot of £200,000 to start with.¹⁶

What Are the Charges for Organon’s SIPP Product?

The charges for Organon’s SIPP product include an initial set-up fee, an annual administration fee, and fees on some benefit payouts, investment, and property transactions.¹⁷

Establishment fees include a set-up cost of £250 and an annual administration fee of £395. 

Initial and ad hoc income payments, as well as benefit crystallisation, carry a £100 charge each. 

Regular income incurs a £100 annual fee, while processing death benefits and annuity purchases costs £250 initially.

Investment transactions are £100 initially and annually for new deposit accounts over 30 days, and £100 annually for fixed-term deposits. 

How To Contact Customer Service & Support?

Customer service and support include contact channels, response times, and client reviews and testimonials.  

Contact Channels

Contact channels for Organon include a website contact form, an email address, and a phone number. 

The latter two are, respectively, general@organontrustees.co.uk and 0161 480 5157.

Response Times

There is no indication of Organon’s response times.

Client Reviews & Testimonials

There are no online client reviews and testimonials available for Organon Trustees.

What is Regulatory Compliance & Protection?

Regulatory compliance and protection ensure adherence to industry regulations.

The Financial Services Compensation Scheme (FSCS) provides protection to consumers,¹⁸ and robust data security measures safeguard sensitive information.

Regulation

Organon SIPP Services Limited is registered in England and Wales (registration number 06633255) and is authorised and regulated by the Financial Conduct Authority.

Financial Services Compensation Scheme (FSCS) Protection

A SIPP investor is entitled to seek compensation via the Financial Services Compensation Scheme if Organon does not meet its financial obligations.

Data Security Measures

The data security measures Organon Trustees employs include registration with the Information Commissioner’s Office (reference Z1893318).

This registration is maintained under the requirements of the General Data Protection Regulation (GDPR).¹⁹

Company director Marc Gwynne is the designated data protection approved person, who can be contacted by email at marc@organontrustees.co.uk.

How Do You Start Evaluating Organon’s Place in the SIPP Market?

Evaluating Organon’s place in the SIPP market can be done by breaking down its strengths and weaknesses, discussing predictions for future developments, and sharing some final thoughts and recommendations.

Strengths & Weaknesses

The strengths of Organon’s SIPP include a wide range of investment options, flexibility in withdrawal options, and tax efficiency. 

However, weaknesses may include potential costs and fees associated with the SIPP and the need for careful selection of investments within the SIPP.

Predictions for Future Developments

Future developments for Organon are difficult to predict, so it is advisable to stay informed about regulatory changes, market trends, and updates from Organon Trustees.

Final Thoughts & Recommendations

Final thoughts and recommendations are that Organon SIPPs may suit retail investors with significant funds seeking an all-encompassing investment solution. 

Evaluating such SIPPs requires consideration of costs, investment options, and retirement goals. 

Consulting a financial professional will enable you to receive tailored advice based on individual needs and objectives.

Common Questions

In Conclusion

Organon’s SIPP offers diverse investment choices, customisable withdrawals, and possible tax benefits, granting individuals more control over their pensions.

However, it is important to consider costs, investment choices, and individual retirement goals when evaluating Organon’s SIPP or any other pension scheme. 

Seeking guidance from a financial professional can provide valuable insights and help make informed decisions aligned with specific needs and objectives.