How to Find the Best SIPP (Not Just the Cheapest)


With all of the changes to the UK pension system over the last few years, many people are starting to worry about whether they are ever going to be able to afford to retire!

This has led many to start thinking seriously about setting up some sort of personal pension of their own. In the UK, one of the most popular ways to start a pension is to set up a SIPP (Self Invested Personal Pension).

With so many SIPP providers out there, though, how do you go about choosing the best SIPP provider for your individual needs?

Your first instinct might be to just go for the cheapest SIPP around. This might be the one with the lowest fees and charges.

Is this really wise, though? Here we look at a few other things you might want to consider before diving in.

Cheapest Isn’t Always Best

Let’s start with the point about whether you should just go for the cheapest SIPP on the market?

In life when things are cheap it often means that something has been sacrificed. It might be the quality of the materials used, the level of product guarantees on offer, or even the after sales customer service and support. Somewhere along the line, something gets neglected. The same could be argued when it comes to finding the best SIPP for your needs.

When you are setting up a SIPP and investing a substantial amount of money (possibly for the first time) it is going to be vital that you go with a SIPP provider who can give you all of the advice, support and tools that you will need to be able to make smart and quick investing decisions.

You will also want to be able to act on these decisions whenever and wherever you are. This means that choosing a company with the right online and app features is going to be important.

Getting the Best Support

When setting up and investing in a SIPP, you will likely have many questions. It is therefore essential that the SIPP provider you choose on hand to answer these questions.

Personally, when I have a question I want it answered quickly! I don’t want to spend hours navigating a company website trying to find the answer. I want to be able to pick up the phone or chat online, knowing that there is a trained professional to answer my questions quickly and with minimal hassle.

Accessing the Best Investments

Another thing you will want to consider is the types of investments you are hoping to make.

Not all SIPP providers allow you to invest in shares and funds directly, for example. So, if you are setting up a SIPP with the intention of picking your own funds and companies to invest in, you’ll need to check that your chosen provider offers this option.

Using the Best Tools

Do you ever wonder how we used to get through life before the invention of mobile apps? I personally use them a lot. Anything from checking the weather to online banking and more.

For a DIY investor a mobile app to control and manage your SIPP can be a really handy thing to have. This can enable you to trade in and out of positions quickly and easily wherever you are.

Fees and Charges

Of course, we shouldn’t completely ignore the fees charged by different providers. If you can find a good SIPP provider with reasonable fees too, then this is going to mean a bigger pension pot for you to enjoy!

On this point it might be worth looking at the various robo-advisors in the UK. These offer lower fees than typical wealth managers and most of them offer a SIPP option. To find out more take a look at our Moneyfarm review.

Do Your Research

The final thing we would say here is that in order to find the best SIPP, you need to fully understand how a SIPP works. You’ll also need to know how to make the best use of it. So continue to do your research!

We hope that this post has given you more of an idea of how to go about choosing the best SIPP provider for you.

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