If you have stockmarket assets in your SIPP, check out the six tips below to ensure you're not being ripped off with exorbitant SIPP charges
Are You Paying 12 Times More Than You Need For Your SIPP?
A Sure Way To Grow Your SIPP Is To Cut Its Running Costs
According to The Telegraph, you could be paying thousands of pounds a year more than you need for stockmarket assets in your SIPP.
Simply moving your SIPP from a costly provider to a more competitive firm could leave you with considerably more money in your pension fund, without affecting your choice of stockmarket assets.
Within its article is a table comparing 17 major SIPP platforms on a like-for-like basis. It reveals the costs of running a SIPP from a fund as small as £5,000 to one of £1 million, with a variety of fund sizes in between.
The numbers are staggering.
At £1 million, your annual SIPP fee could £220. Or it could be an astronomical £2,699.
That’s 12 times more!
In fact, if you choose a SIPP from AJ Bell and invest your money in passive funds, shares, investment trusts, EFTs, gilts or bonds, you pay £100 per year no matter how large your fund (at February 2018).
But it doesn’t end there.
Over the years, the compounding effect of paying way over the odds could wipe out a large part of your retirement fund.
Literally tens of thousands of pounds: money missing from your retirement and unavailable for those you leave behind.
Six SIPP Tips To Help You Save Money
How To Check You're Not Paying Over The Odds In Charges
Check out the charges levied by AJ Bell as it regularly comes out as being the most competitive SIPP operator on the market.
A switch could save you many thousands of pounds over the years, which would be great for you and your family.
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AJ Bell Is Often The Best Value SIPP For Stockmarket Assets
Over time, charges can wipe out a huge part of your fund. We like AJ Bell because there are no set-up costs. If you hold passive funds, which is our preference, or shares, investment trusts, EFTs, gilts or bonds, you pay one small fixed fee no matter how large your fund. And when you come to draw your benefits either as occasional drawdown or UFPLS payments, there's a small charge for the whole year no matter how many times you access your money (many SIPP and SSAS providers charge more than this for each payment). However, you should always compare charges in detail, because AJ Bell could be more expensive than other providers, depending on the type of stockmarket assets you hold.
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As SIPPclub neither advises on, nor arranges, nor recommends specific investments or strategies, we're unable to say whether a SIPP or SSAS or any investment within it is right for you. Ultimately, it’s your money and your decision, and you should only proceed once you're satisfied you've undertaken sufficient due diligence. If you need advice, you should speak to your trusted adviser, or you could find a local adviser from Unbiased.co.uk. Alternatively, we'd be pleased to introduce to a suitably qualified independent financial adviser.
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