Another year has more competition among platforms that offer self-invested personal pensions (Sipps). While the majority of platforms have not changed their fees over the past 12 months, cuts across a handful of platforms have broadly been geared toward less experienced investors. AJ Bell’s Dodl, which went live earlier this month, charges 0.15 per cent a year with no dealing fees. The catch is that the investment options are limited: just 50 blue-chip UK stocks and 30 funds (largely made up of AJ Bell’s managed funds, low-cost trackers and Vanguard’s LifeStrategy passive offerings).
In a similar vein, Bestinvest has slashed its platform fee to start at 0.2 per cent for its ready-made portfolios. While account fees still start at 0.4 per cent for stock pickers, the dealing fee has been lowered to £4.95 per trade for listed securities. The platform has also introduced free person-to-person coaching and portfolio health checks for a fixed fee. Interactive investor, meanwhile, has launched its ‘Pension Builder’ for customers who only want a pension on the platform, with a flat fee of £12.99 per month.
When it comes to your Sipp, keeping fees low is especially important. Your Sipp is likely to be one of your largest savings pots and if you’re in the accumulation phase you might not be touching it for years or even decades. You need to think carefully about what fee structure is likely to work out most cost effectively for you – considering all the different options that may apply, from drawdown to dealing to transferring out and annual account charges.