Choosing SIPP Providers – Pensionfinder
SIPP providers are for those fed up with non-performing traditional pensions. Self-Invested Personal Pensions (SIPPs) place the power firmly in the hands of the saver. With a SIPP, an investor can choose his or her own investments without having to worry about interference from financial institutions, or huge amounts of money that cannot be moved quickly. With the introduction of the low-cost SIPP, this option has been opened to thousands of people for the first time.
A Labyrinth Of Fees
Naturally, SIPP providers vary in terms of what they offer which is why the services of an independent financial advisor can come in particularly useful. The first thing to look at is the set-up fee. Some SIPP providers charge up to £500 while others offer this service for free. Also, SIPP annual management fees vary. This is an insidious charge that slowly eats your savings away. Do not choose SIPP providers that charge an annual fee of more than 1.5% unless you have a really good reason to do so.
Funds, Oeics and unit trusts may be hit with a 5% charge by some providers but it is possible to find companies that charge nothing. Transferring money from another pension to a SIPP could be more trouble than it is worth, especially among SIPP providers that charge excessively high fees. If you elect to move money from the SIPP to another account, this too could be hit with an extra fee. The investments available through different SIPP providers vary greatly, so make sure you choose a provider that caters for any of your specific wants. Finally, the interest rate offered varies among companies. It is possible to be stuck with a miserly 0.1% interest rate with other organisations offering amore generous 4%.
As you can see, the range of fee charged by SIPP providers varies with the wrong decision liable to cost you hundreds if not thousands of pounds over the course of your life. This is why an independent financial advisor is necessary. These professionals will uncover every fee and charge associated with all SIPP providers in the UK thus helping you choose the best company for your personal needs. Fill in our form to contact an advisor and start saving in a SIPP today.