Updated: May 13, 2019

SIPP Charges, Costs and Fees

Want to know how to find the most competitive charging structure for a SIPP? The brokers we work with can help guide you to the best one for your circumstances.

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Tony Stevens

Author: Tony Stevens - Finance Expert

Updated: May 13, 2019

SIPPs can be a great option for those who want greater control over their retirement investments, but it’s important to be aware of the fees and charges they come with, especially if you’re on the lookout for the most affordable deal.

We have put together a guide to SIPP charges and what to look for when comparing SIPPs.

How do I find the cheapest SIPP?

Pensions can be complex with sometimes tens of things that need consideration before knowing what the right one for you is (not just the cheapest).

The most viable low cost SIPP might ultimately be something you completely managed yourself like a DIY (do it yourself) SIPP. You would pick a provider/platform and then choose what to invest in and how much to invest, manage it on a weekly/monthly basis making sure it is performing and making trades (buying and selling shares).

This option, although it may be the cheapest SIPP option is usually geared towards people who understand investments and who have the time/is happy to spend the time monitoring and managing it.

What else should I consider when looking for a low cost SIPP?

You also have the option of paying for an authorised investment manager to look after and manage your SIPP and act on your investment wishes or just go into a ready made portfolio also looked after by an expert investment manager.

To get the right advice for your circumstances and to make sure you are getting the lowest SIPP charges possible, you can get in touch with us today by making an enquiry and speak with one of the pensions experts we work with.

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What do I need to know about charges?

SIPP charges vary depending on many variables such as:

  • How much is the pension pot/how much is the investment
  • What type of investments you will want?
  • How often you will want to change/trade
  • What service level, ongoing advice or support you want

What costs and fees will there be?

Annual admin SIPP provider costs

Some providers/platforms do not charge this fee however, this is rare. The fee could either be a flat fee – for example £100 per year or a percentage (relevant to your investment), say 0.40%.

Funds and shares annual fee/custody fee

Sometimes you will find a platform charges a funds and shares fee. This like the admin fee can also be a flat fee or a percentage – for example £100 or 0.50%. Often if the platform charges a funds and shares fee as a percentage then they do not charge an annual admin fee.

Deal/trade fees

The majority of platforms charge a fee every time you buy or sell investments, this can be circa £10. If you think you’ll be proactive and an active trader, then you may want to consider looking for the lowest trading charges.

Income drawdown charges

After you have paid the above fees year in year out when you come to that time when you want to start taking the money out (income drawdown) you will have to pay more fees. This can be anything up to £150 per year on top of up to £300 to initiate the drawdown.

Exit/transfer fees

If you do any transfers in or out of the SIPP whether that be transferring in a separate pension into your SIPP or transferring out to something else there will be a charge normally this is circa £50.

To go into further detail on these charges and get a personalised SIPP quote for your circumstances, the right thing to do would be to speak to an expert pensions advisor, you can get in touch with us today by making an enquiry here to speak with one of the experts we work with.

How do costs compare from one provider to another?

When you come to compare SIPP charges you will find that they can vary dramatically from provider to provider. You could possibly get a SIPP that only has an annual cost of £100 but will it actually offer the most value for your money?

The provider with the lowest SIPP fees may not necessarily be the worst SIPP in relation to charges compared to others, but it is more likely that it will be a no frills product. On the flip side a more expensive SIPP cost in comparison might offer you a much better service for what you require.

The right way to compare the costs of different SIPPs is to make an enquiry and speak with an expert pension advisor like the ones we work with.

How do I carry out a charges comparison?

Carrying out a SIPP comparison requires a lot of legwork and knowledge of the market. Online rates tables aren’t always useful, since they aren’t tailored to you as an individual and often give prominent placement to sponsored products.

With this in mind, the recommended way to compare SIPPs is to have an expert pensions advisor do it for you. The ones we work with can offer bespoke advice on these products, highlight all of the available options and help you find the most suitable deal for your needs and circumstances.

When doing a SIPP provider cost comparison, they will look at the whole picture and consider what it is you want to achieve. It could be easy enough to sit down and do a straightforward SIPP fees comparison and go with the one that looks the cheapest but what is important is understanding first what you want from your SIPP – and a pensions expert will take this into account.

You need to know what the total cost of the SIPP will be, taking into account the drawdown charges because, ultimately, that is what you are doing – saving to be able to drawdown an income in retirement. The fact that dealing/trading charges are small may be less significant if the drawdown charges are excessive or you do not actually plan on being active in trading investments.

Speak to a pension expert

To get a professional comparison of SIPP charges from an expert who will be able to provide you with a personalised SIPP quote, you can get in touch with us today by making an enquiry and speak with one of the experts we work with.

Ask a quick question

We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in pensions. Ask us a question and we'll get the best expert to help.

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Tony Stevens

Tony Stevens

Finance Expert

About the author

Tony has worked in a vastly diverse array of areas in the pensions industry for over 20 years. Tony regularly writes for trade press, usually on topical and pensions pieces as well as acting as a judge at prestigious national events.

Tony is also a highly qualified Independent Financial Adviser in his own right. His mantra has always been “Hope for the best, but plan for the worst”, and believes that the biggest impact that an adviser can have on a client’s life journey is to take them on a journey from generally having little or no real idea of what their retirement will look like, to giving them the understanding of what their retirement looks like now, then helping them navigate a path to what they want their retirement to be.

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