SIPP annual fees set to increase over next year

Defaqto research suggests margins have fallen so low, in response to growing competition in the SIPP market, that providers no longer have room for further price cutting. Annual admin fees have barely changed in recent years, with average charges for a £100,000 SIPP standing at £416.73 in March 2006 compared to £414.25 in March 2009. Defaqto believes annual charges may start to rise in 2009/10 as SIPP providers simply cannot afford to keep prices so low. Low interest rates following the financial crisis could also lead to a significant rise in SIPP costs, Defaqto adds. “[A rise ...