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So… you have decided you are going to take out a SIPP to manage your own pension.
Congratulations!
It is a sensible move, we reckon, because, let’s face it, given past scandals and scams you’re not guaranteed anything these days with traditional pensions.
Putting your pension into a SIPP – or starting a brand new one – means you get total transparency to see how your pension is grows.
Of course, there is risk in doing so – but you know that already or you wouldn’t be here wondering who we believe are providing the best SIPPs in the UK right now!
Without further ado – here they are…
Hargreaves Lansdown – Hargreaves Lansdown Vantage SIPP
With 430,000 clients using the HL SIPP, it is easy to see why they are one of the most popular SIPP providers. They have won numerous Best SIPP Awards too.
You can invest in shares, unit trusts and investment trusts – with more than 2,500 on offer.
Annual admin charge for funds – 0.45% up to £250,000, 0.25% for £250,000 to £1m, then 0.10% between £1m and £2m. There is no charge over £2m.
There’s a separate charge of 0.45% for holding shares. This is applied to the whole account, but it’s capped at £200.
There’s no transfer out fee and you can start with a minimum lump sum of £500 or a regular monthly contribution of £25.
You get free research, the latest investment news and they have a handy section to check out recommended investment ideas.
You can select your own or choose from their ready-made portfolios.
There’s a pension calculator to help get you started.
Interactive Investor
Also boasting more than 400,000 clients, award-winning interactive investor have much to admire as a SIPP provider.
They have a wide choice of investments on the market. One look at their handy, in-depth lists would appear to vouch for that.
They offer Super 60, Ace 40 or one of their Quick Start Funds or Model Portfolios.
Their Ace 40 is dedicated to ethical investments.
ii is one of the cheapest providers for a pension over £50,000. They have 3 monthly plans: £9.99, £13.99 or £19.99. Charges per trade are £3.99 or £7.99.
If you already have one of their ISA or Trading Accounts, you can add a SIPP for just £10 a month (plus your existing monthly fee).
There is VAT on top of their £100 annual charge, though there is no charge for the first 6 months.
There is no exit fee.
AJ Bell – AJ Bell Youinvest
Formed in Manchester by Andy Bell and Nicholas Littlefair in 1995, AJ Bell was floated on the stock exchange at £675 million in November 2018. By 2021, it had £75.6 billion of assets under administration and 398,000 customers.
It is one of the largest providers, offering UK + US stocks investments.
It has an annual charge of 0.25% of the account up to £250,000, 0.10% for £250,000 up to £1m, 0.05% for £1m-£2m, no charge over £2m.
There are also charges of £9.95 for the first 0-9 trades. Subsequent trades are £4.95 for trades.
Types of investment options include:
Investing in funds – with more than 2,000 funds to choose from.
Investing in investment trusts – with over 450 available, it’s a low-cost way to diversify your portfolio and to aid your research.
Investing in shares – with hundreds of Stock Exchange-listed companies to invest in.
Investing in exchange traded funds – a range of ETFs which track your choice of index or benchmark.
Vanguard – Vanguard Personal Pension (SIPP)
The fact that Vanguard is “bringing value to 30 million investors worldwide” tells you just how MASSIVE this global leader is as a registered investment advisor.
In fact, founded in the US forty years ago, The Vanguard Group, Inc. is now worth a cool $7 trillion in global assets under management.
Here in the UK, Vanguard offers UK + US shares investments.
It charges an annual 0.15% per year (capped at £375) which is very reasonable and attractive.
There are also no admin/exit fees.
Minimum investment is a £500 lump sum or £100 per month.
You can build your own portfolio and choose from over 75 individual funds – including ETFs, active funds and index funds.
Or choose their LifeStrategy fund which allows you to invest globally without the bother of managing a portfolio yourself. Just choose your blend and leave the rest to them!
What’s not to love if they are successfully handling $7 trillion-worth of other peoples’ assets already?
Conclusion
We actually like all four of these SIPPs providers here at Investment Mastery, mainly because they are all attractive in their own right and have something to offer that’s a little different from one another.
Just remember when choosing your SIPP – SIPPs are aimed at people happy to make their own investment decisions. Investment value can go up or down and you could get back less than you invest.
