News

Sipp set-up fees drop 13%

The cost of setting up a self-invested personal pension (Sipp) has dropped by up to 13 per cent in the past year and is set to fall further, it has been claimed.

According to financial data firm Defaqto, increasing competition in the booming Sipps market has led to "downward pressure" on charges such as administration fees and investment transaction fees as firms compete for business.

Research by the company found that average set-up fees for initial investments of £50,000 fell from £306.23 last year to £266.57 now, while for investments of £100,000, fees dropped from £299.74 to £261.73.

Defaqto's group head of pensions and wealth management Matt Ward said that Sipp providers had previously not been under pressure to reduce charges in what was seen as a premium service industry, but that now the tide had turned.

"More providers will be seeking fee structures which balance the base administration duties with the level and complexity of the investment transactions within the Sipp. This could lead to more direct links being made between the administration and transaction fees," he commented.

The number of investment options available within Sipps was increased on pensions A-Day in April last year, making them even more flexible.

Insurances Limited “We are expecting the SIPP market to be second to the Property Investment Market, lower fees will do very little to stop the Uk’s lover affair with property.”

Landlord Mortgages “Such pensions would have received a great boost last year if the Government had agreed to allow Buy To Let property to be located within a SIPP, but it wasn’t the case.”


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