SIPP pension charges comparison methodology: how we worked it out
We partnered with independent experts at The Lang Cat to compare the yearly SIPP pension charges of an ii SIPP with other SIPP providers.
Methodology
Our analysis focused on comparing the annual charges of various SIPP providers based on the published rates as of 1 September 2024. We used the following assumptions for our comparison:
- Holdings: 100% in funds. Choosing other assets, such as shares and ETFs, may result in lower charges.
- Trades: 2 fund purchases or sales
In our comparison, we highlighted instances where additional trading fees apply and where they do not. For example, we detailed the online trade costs for interactive investor and AJ Bell, while noting that Hargreaves Lansdown, Standard Life, and Aviva do not charge additional fees for trades.
Important considerations
- Pension charges only: to ensure a fair comparison, we excluded fund manager charges and focused solely on the pension provider charges.
- One-year analysis: this comparison covers a single year and does not account for investment growth or the impact of inflation over time.
To ensure the comparison is relevant, we included currently available Self-Invested Personal Pensions (SIPPs) that offer access to similar investment funds. For Standard Life, we chose the Level 2 SIPP variant, which provides access to both comparable features and investments, including the same fund and class of fund.
Our analysis includes comparisons using the ii Pension Essentials and Pension Builder Plan (for Pension Only Customers).
The SIPP comparison information provided is for illustrative purposes only. For precise fees and charges, we recommend contacting the SIPP provider directly.
Applying for an ii SIPP
When applying for an ii SIPP we ask how you intend to use your pension, including how you plan to invest and how often you plan to buy or sell investments. This information is used to provide you with a personalised illustration, which will include an estimate of all the charges you could pay and what the effect of those charges could be on your investment performance over time.