'Price war' on Sipps set-up fees
The average cost of set-up fees for self-invested personal pensions (Sipps) has fallen according to a recent report, with this drop attributed to increased competition in the market.
Research from Defaqto reveals that the average set-up costs for Sipps has decreased by up to 13 per cent in the past 12 months, while increasing pressure exists to lower investment transaction fees and administration costs.
Matt Ward, group head of pensions and wealth management at the financial research company, said: "Sipp providers have historically not been under much pressure to reduce charges in what was perceived to be a premium service industry."
He added that this has now changed, with value-for-money becoming a major concern for Sipps of all values.
Last month, stockbrokers Charles Stanley argued that a combination of pensions and savings plans can provide investors with the most tax-efficient means of saving, noting the £215,000 annual limit for Sipps investment in the tax year compared to the £7,000 maximum on individual savings accounts.
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