SIPP costs are falling

SIPP providers have cut their fees over the past five years according to the independent financial research company Defaqto. The reduction in fees has continued despite the low interest rate environment squeezing SIPP provider margins. Low interest rates hurt SIPP providers as they reduce the margin between the interest they pay to the client and the interest they receive from the bank running the SIPP account. Defaqto’s figures show that the average set up fees for a £50,000 SIPP had fallen from £267 in March 2007 to £224 in May 2011; a reduction of 16%. The average annual administration fee for a ...