7 min Read
08 Mar 2019

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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The Cheapest SIPP – the best value pension for you

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 UK's most popular SIPP - Hargreaves Lansdown Vantage 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% between £1million to £2million and there is no charge over £2million
  • There is an additional 0.45% charge for investing in shares which is applied to the whole account, but capped at £200 per year.
  • Transfer out fee £25 per holding or fund.

Which is the cheapest SIPP?

Cheapest SIPP for £10,000 - Fidelity International

Fidelity SIPP - click for more details

  • minimum investment - £800 lump sum or £40 per month
  • Standard annual management fee across total investments
    • 0.35% if you have a regular savings plan or £45
    • 0.35% if total investment is between £7,500 and £250,000
    • 0.2% if total investment is over £250,000
  • no charge for buying or selling funds

Alternative cheap SIPP for £10,000

Cheapest SIPP for £20,000 - Fidelity International

Fidelity SIPP - click for more details

  • minimum investment - £800 lump sum or £40 per month
  • Standard annual management fee across total investments
    • 0.35% if you have a regular savings plan or £45
    • 0.35% if total investment is between £7,500 and £250,000
    • 0.2% if total investment is over £250,000
  • no charge for buying or selling funds

Alternative cheap SIPP for £20,000

Cheapest SIPP for £50,000 - AJ Bell

A J Bell Youinvest - click for more detailsaj bell review

  • minimum investment - £1000 lump
  • tiered annual management charge
    • 0.25% on the first £250,000 of funds.
    • 0.10% on the value between £250,000 and £1m.
    • 0.05% on the value between £1m and £2m.
    • No charge on the value of funds over £2m.
  • Charges for buying or selling funds range from £1.50 to £9.95

Alternative cheap SIPPs for £50,000

Cheapest SIPP for £100,000 - AJ Bell Youinvest

A J Bell Youinvest - click for more detailsaj bell review

  • minimum investment - £1000 lump
  • tiered annual management charge
    • 0.25% on the first £250,000 of funds.
    • 0.10% on the value between £250,000 and £1m.
    • 0.05% on the value between £1m and £2m.
    • No charge on the value of funds over £2m.
  • Charges for buying or selling funds range from £1.50 to £9.95

Alternative cheap SIPPs for £100,000

Cheapest SIPP for over £250,000 - Interactive Investor

Interactive Investor - click for more detailsii

  • £22.50 per quarter account fee including £22.50 in free trades
  • SIPP admin fee of £100 +VAT.
  • £10 per trade for all investments, reduced to £6 per trade over 10 trades per month

Alternative cheap SIPP for £250,000

  • IWeb - click for more details

Cheapest SIPP for £1million - Interactive Investor

Interactive Investor - click for more detailsii

  • £22.50 per quarter account fee including £22.50 in free trades
  • SIPP admin fee of £100 +VAT.
  • £10 per trade for all investments, reduced to £6 per trade over 10 trades per month

Alternative cheap SIPPs for £1million

IWeb - click for more details

  • admin charge per quarter of £22.50 investment less than £50,000, £45 investment over £50,000
  • regular withdrawals £180 per annum, one-off withdrawals £90
  • account closure £300
  • buying or selling funds £5 per trade

 

The above SIPP comparison has assumed an investor invests in funds and makes 10 fund switches a year. The analysis has taken into account SIPPs offered by the following SIPP providers: AJ Bell Youinvest, Alliance Trust Savings, Barclays Smart Investor, Bestinvest, Charles Stanley Direct, Close Brothers A.M. Self Directed Service, Fidelity International, Halifax Share Dealing, Hargreaves Lansdown, Interactive Investor, iWeb, Nutmeg, James Hay Modular iPlan, Selftrade,Standard Life Level 2 Investments, Strawberry, Telegraph Investor, The Share Centre, Willis Owen.

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