SIPPS Price War Breaks Out
Average set up fees for Self-Invested Personal Pensions (SIPPs) have been cut by up to 13 per cent in the past year as competition increases in the booming market following a period of unbridled success, according to financial research company Defaqto.
Defaqto also predicts that "downward pressure" on other charges including administration fees and investment transaction fees will continue as clients and their advisers focus on value for money in SIPPs.
Defaqto's report 'SIPPS in the UK 2007- Let battle commence' shows average set-up fees for initial investments of £50,000 have fallen from £306.23 last year to £266.57 now and for £100,000 investments from £299.74 to £261.73. For initial investments of £200,000 and above the average set-up fee is now £255.70.