SIPP provider A J Bell has hit out at ‘naïve' generalised comparisons of the costs of different types of pension plans.
It is urging people to look beyond headline rates as the price can vary greatly depending on client choice, with underlying investments often responsible for the majority of the cost.
It says SIPPs in particular have come in for criticism on price when compared to personal pension and stakeholder funds.
However, the provider says it is important to drill down into individual SIPP pension plans to see clients are getting value for money.
Billy Mackay, marketing director of A J Bell, says: “In a world where investment freedom and un-bundled charges are becoming normal, figures show that you must look beyond the headline rate.
“SIPPs satisfy a clear demand for flexibility and control, ultimately the total cost is driven from the decisions made by the client. The days of saying that one type of pension is categorically more expensive than another have gone".
We would welcome your views on this story. Do you think your clients get value for money with their pension investments?
23% fall since Q1
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Including advice firm Chadkirk WM
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Lowest level since 2016