With SIPP pensions there are two main charges involved – a set-up fee and an annual administration fee.
The initial charges for setting up a SIPP are typically between £200 and £400, while the annual administration cost usually ranges between £300 and £900, depending on the provider.
Charges for your SIPP
These charges are usually made clear when applying. Customers who set up a SIPP with a limited range of options such as shares, funds and cash, may find that no set-up fee is required, only a modest annual fee.
Other possible charges include:
- Transfer charges – the cost of moving funds from other pensions into a SIPP
- Dealing charges – cost of buying and selling investments (other than property) within a SIPP.
- Exit charges – cost of transferring a SIPP elsewhere
- Property purchase – pension trustees charge for their services when buying a commercial property, in addition to usual legal and surveyors fees.
- Fees for additional advice or expertise – an independent company/financial adviser can charge the equivalent of between 0.5 per cent and 1 per cent per year of the value of the pension fund for providing expertise in managing a SIPP and its investments.