Yahoo Finance In tables: the cheapest Sipp firms – whether you're investing £5,000 or £1m
We regularly publish a table showing the cost of holding Isa investments at Britain’s leading fund shops. The table exposes striking differences between the cheapest and most expensive firms.
Pension investors could save thousands of pounds a year in some cases by switching from the costlier investment shops, our figures showed. For example, a well-off saver could pay as little as £50 a year for the administration of a £1m Isa portfolio – or as much as £2,579.
But many people also hold money in self-invested personal pensions, or Sipps, partly because the annual allowances and tax reliefs are more generous than on Isas.
Charging structures for Sipps and Isas tend to be different, so to form an accurate idea of which Sipp firm will be cheapest for your own portfolio, you’ll need to scroll across the graphic below (last updated on November 15 2017)
Although the individual figures may be different from our Isa tables, the message the table sends is the same: your choice of Sipp administrator has a huge impact on your costs and, therefore, on the eventual size of your pension fund.
As pension money accumulates over decades, an extra £1,000 or more in costs every year could make a life-changing difference to your income in retirement.An an example of the possible cost savings, a £1m Sipp at Strawberry Invest's self-directed service would cost £2,699 a year, according to the table. The same portfolio at Interactive Investor would cost £220 a year. An investor who switched would therefore make a saving of over 90pc.
Our figures, calculated independently by Lang Cat, a consultancy, assume that investors hold 80pc in funds and 20pc in shares, with four fund switches and two share trades per year.
The figures are for a DIY investor managing their own portfolio.
How should investors use this information?
If your fund shop is in the red zone of our table for the amount you have invested, it’s worth considering a switch.
But switching is time-consuming and potentially expensive, as some firms charge to move your assets to another fund shop. And you may be happy with the service at your existing company.
So before you switch, try haggling: many readers say they have won better deals by threatening to leave.
Another key message from the table is that as your Sipp gains in value, the cheapest fund shop changes. So check your charges regularly.
Fund shops often amend their charges, so this table will be updated regularly. Bookmark telegraph.co.uk/sipps
