5 min Read
18 Jan 2017

Written by Damien

Damien is one of the most widely quoted money and investment experts in the national press and has made numerous radio & TV appearances. He created MoneytotheMasses.com while working in the City when he became disillusioned with the way the public were left to fend for themselves because they could not afford financial advice.

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Cheapest SIPP – the definitive answer

cheapest SIPPCheapest SIPP - Self Invested Personal Pension

The cheapest SIPP depends on a number of factors including how big your pension pot is and the types of investments you wish to hold. In this article we tell you the cheapest SIPP for a given sized pension pot. If you are considering taking out a Self Invested Personal Pension (SIPP) then I suggest you download the following FREE SIPP guide which tells you the pros and cons of a SIPP, what to look out for and how to get the most from a SIPP. It's the best guide on the subject that I've come across, plus it's free.

Finding the cheapest SIPP for you

Of course, simply going for the cheapest SIPP is not always the best option. You need to take into account that your personal pension pot will grow, either due to investment performance or further pension contributions. So what is the cheapest SIPP today will not necessarily be the cheapest SIPP for you in a few years time. That is why we have used broad pension size bands to allow for fund growth when deciding which is the cheapest SIPP below.

Also, remember to consider think about value for money. The cheapest SIPP will not likely provide any ancillary benefits such as call centres, a smartphone/ipad app or a wide range of investments to choose from. That is why we've also highlighted the UK's most popular and award winning SIPP which, while not the cheapest SIPP in the market , does offer value for money and great customer service and a market leading app. We also highlight:

  • the cheapest SIPP for most people
  • the cheapest SIPP for pension pots under £50,000
  • the cheapest SIPP for pension pots between £50,000 & £100,000
  • the cheapest SIPP for pension pots over £250,000

 

The UK's most popular SIPP - Hargreaves Lansdown Vantage SIPP* hargreaves lansdown sipp

Hargreaves Lansdown Vantage SIPP - click for more details

  • The most popular SIPP in the UK and the winner of numerous Best SIPP awards.
  • Reasonably priced.
  • Among the widest investment choice available including shares, investment trusts, unit trusts and ETFs.
  • Excellent customer service.
  • Market leading website and app which enable you to buy and sell investments easily, even via the smartphone app.
  • The annual charge depends on the size of your pension pot  - it is 0.45%  up to £250,000, 0.25% for £250,000 to £1m, then 0.10% above £1million.
  • There is an additional 0.45% charge for investing in shares which is applied to the whole account, but capped at £200.
  • Transfer out fee £25 per holding or fund.

Which is the cheapest SIPP?

The cheapest SIPP for most people - Fidelity SIPP fidelity sipp

Fidelity SIPP - click for more details

  • Designed as a low cost SIPP with no set up fees applied.
  • There is an annual fund admin fee of £25 p.a. flat fee up to £7,500 then 0.35% for pensions valued up to £250K, then 0.2% on larger pensions yet is capped at £2,000.
  • There is a trading fee of £9 on shares.

Cheapest SIPP for pension pots up to £50,000 - Bestinvest bestinvest sipp

Bestinvest - click for more details

  • The pricing structure is tiered but for this size of pension the annual charge for investing in funds and shares of 0.30%.
  • There is no charge for switching funds.
  • There is a £7.50 charge per share deal.
  • Tf you want to move your money away from Bestinvest there is a transfer out fee of £100 + vat for investment below £100k

Cheapest SIPP for pension pots between £50,000 & £100,000 - Bestinvest bestinvest sipp

Bestinvest - click for more details

  • Charges are as stated above.

 

Cheapest SIPP for pension pots over £250,000 - Interactive Investor ii

Interactive Investor - click for more details

  • There is an annual admin fee of £80 + vat.
  • An annual charge for funds £80 per year.
  • Fund dealing and share dealing charge of £10 per trade
  • There is no fee to transfer away in the 1st year but it is then £100 thereafter.

 

The above SIPP comparison has assumed an investor makes a 5 trades or fund switches a year. The analysis has taken into account SIPPs offered by the following SIPP providers: Aegon, AJ Bell Youinvest, Alliance Trust Savings, Barclays Stockbrokers, Bestinvest, Charles Stanley Direct, Chelsea Financial Services, Close Brothers A.M. Self Directed Service, Clubfinance, Fidelity Personal Investing, Halifax Share Dealing, Hargreaves Lansdown, Interactive Investor, iWeb, James Hay Modular iPlan, Nutmeg, Strawberry, Telegraph Investor, TD Direct, The Share Centre, Trustnet Direct, Willis Owen.

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