IFA for Pension Fees

[lionheart79]

SIPP admin charges

slightly off topic [of IFAs] but related to pension fees:-

I am opening a SIPP with Interactive Investor as I already hold my ISA through them. The quarterly fee, which can be used towards two trades, is already shared with (and therefore accounted for) my ISA which makes the II SIPP the best value for me.

the only additional charge for the wrapper (not withstanding the integral fees on the individual securities invested in) is the annual SIPP admin fee, circa £100. Presumably this cannot be considered a company expense? It is paid up front and not out of the pension contribution, which was what I was hoping for.

[lukemg]

So - my understanding is that this charge is applied against any cash in the SIPP as opposed to a separate charge ? and so will come out of contributions you have made.
So if that contribution is from the company then they will take it from this.
This is no different from any dealing charges you incur (I think II has some included in the charge ?) which are a SIPP account expense and not personal to you.

[Lance]

So - my understanding is that this charge is applied against any cash in the SIPP as opposed to a separate charge ?

It depends.

HL suggest you leave a small amount of cash they can take their (HL) fees out of.
But also, depending on the funds you've invested in, there may be additional fees taken from the funds pot.

[lionheart79]

So - my understanding is that this charge is applied against any cash in the SIPP as opposed to a separate charge ? and so will come out of contributions you have made.
So if that contribution is from the company then they will take it from this.
This is no different from any dealing charges you incur (I think II has some included in the charge ?) which are a SIPP account expense and not personal to you.

I went ahead with II - they require card payment as part of the SIPP setup process, there was no getting away from that as this step occurs prior to due diligence on their part etc. I'm hoping that in future years they will extract the annual fee from the SIPP cash balance and will just take the hit this year.