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Should I invest via a full-service Sipp?

If you want to a commercial property or esoteric assets in your pension you have to pay for a full service Sipp
Should I invest via a full-service Sipp?
  • Cheaper Sipps generally enable you to hold securities such as funds and shares
  • More expensive options may allow you to hold commercial property, unquoted companies, derivatives and physical commodities
  • You should not have one of these Sipps unless it makes sense for you to hold these assets

There are a number of different self-invested personal pensions (Sipps) available, but these vary in terms of what they enable you to invest in and how you can withdraw from them.

Cheaper Sipps, such as those offered by investment platforms, typically allow you to invest in a wide variety of open-ended funds, investment trusts, exchange traded funds (ETFs) and in some cases direct share holdings. As an example, Hargreaves Lansdown charges 0.45 per cent of the value of funds held in its Sipp up to a value of £250,000, 0.25 per cent on the value of funds between £250,000 and £1m, 0.1 per cent on the value of funds between £1m and £2m, and doesn’t charge on values over £2m. For listed securities such as investment trusts, ETFs and direct shareholdings held within its Sipp, it charges 0.45 per cent of their value a year but caps this at £200. Hargreaves Lansdown does not charge for fund trades but does charge between £5.95 and £11.95 per trade of listed securities, and there are no fees for setting up the Sipp or drawdown.

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