SIPPS and How to choose one

SIPPs can vary considerably in terms of charges and the degree to which your investments are managed.

Charges

Each SIPPs provider has a range of varying charges that need to be taken into consideration before signing on the dotted line.

You can be charged an annual fee, a set-up fee when you first sign up for your SIPPs, as well as other administrative fees. You could also be subject to transfer charges if you move your savings from another pension scheme.

Investment charges will include the fees payable on collective investment funds and dealing commissions if trading shares or other Exchange-listed assets. However, some SIPPs providers have pre-arranged discounts with investment providers that could reduce your charges.

Sipps-Pensions.co.uk General Disclaimer

Investments

Most good SIPPs providers offer access to a wide range of investment funds as well as dealing in UK equities. However, should you wish to broaden you range of SIPPs investments, your choice of SIPPs provider will be much more limited. You should make sure that you are happy with the range of investment opportunities they offer before you sign up.

It is also important to find out what a SIPPs provider’s minimum investment value is and whether you can deal with them online, by phone or by post.

Not all SIPPs providers offer advice - some operate on an execution-only basis. It’s crucial to consider whether you have the know-how to proceed without any advice, or whether you would need additional advice – with the corresponding charges.

Administration

Before you invest with them, ask your SIPPs provider to show you examples of any correspondence you are likely to receive from them, including updates and statements. It’s important to be able to see at a glance how your investments are performing.

Ask some background questions before signing on the dotted line, to ensure you’re signing up with a reputable firm. How long have they been doing business? How many clients do they currently have? Are they privately owned or part of a larger corporation?