Historically the cost of the flexibility and choice within a SIPP has been higher than for traditional products. They are however explicit and may prove more beneficial for high value funds and those with higher level contributions as SIPP charges tend to be flat fees instead of a percentage of the fund or transaction.  There is usually a set-up fee in the region of £400 - £600 and an annual fee of around the same amount. In addition there may be transaction fees depending on the investment decisions you make. There will almost certainly be additional charges for administering unsecured income (UI) or alternatively secured pension (ASP) and for setting up and administering property investments.

One of the attractions of a SIPP is that charges are generally explicit – unlike many historic traditional individual pensions. However, it is still important to look at the small print carefully – for example to check the rates of interest paid on cash deposits within the SIPP.

Compared to traditional personal pensions SIPPs are more demanding to administer particularly where an option such as unsecured income (UI) is taken later, or property investments undertaken. Consequently service levels are exceptionally important and Suffolk Life has built its reputation on delivering consistently high standards.

That is why we insist you take professional advice from an adviser authorised and regulated by the Financial Services Authority before setting up a SIPP. Running your own investment portfolio can sound attractive but it requires skill, experience, access to up to date information, technology and time.