Adviser charges for SIPP

[CJT1954]

Hi

be interested in hearing views on Adviser Charges for managing a SIPP, I'm getting a 1% monthly fee which seems like a lot of money per month for not much effort.

Thanks for comments

12% a year or 1% p.a, paid monthly.

What does that include - platform charges? advice? SIPP wrapper? commisions? What products are in the SIPP?

Are you sure it isn't 1% a year? 12% sounds insane.

You're clearly paying 1% over the year, but I still think that's at the higher end.

Are you sure you need a SIPP? Are you clear that you understand the difference between a SIPP and a fund-based Personal Pension?

A SIPP is a wrapper that allows you to individually pick and choose actively where your pension money is invested. It is very flexible and that flexibility costs money. If you then delegate the active management of the investments to a financial adviser that will also be expensive.

If on the other hand what you want to do is pick a spread of established funds and you don't want to scour the financial pages regularly for snippets of news that might affect your investment decisions, nor pay for benefitting from the knowledge of an adviser doing so for you, then you don't want a SIPP.

A friend-of-a-friend who I met once and who works in this sector mentioned that there are many thousands of people who have a SIPP and are paying the higher SIPP fees but not using any of the expensive dynamic flexibility that they are paying for.