Comparing SIPPs - How to choose the right SIPP for you

What are the different kinds of SIPPs?

SIPP providers generally fall into categories, each targeting different types of investors with varying needs and preferences.

• Platform SIPPs (aka ‘SIPP lite’): The most common type, offered by investment platforms and online brokers. These provide access to shares, funds, ETFs, and bonds through user-friendly online interfaces. Sometimes referred to as a ‘SIPP lite’ or a ‘simple SIPP’ because they don’t offer the specialist investment options that full SIPPs offer, these platform SIPPs suit most investors and offer the best balance of cost, choice, and convenience.
• Full SIPPs: Specialist providers offering the widest investment range including commercial property, unlisted securities, and alternative investments. These often charge higher fees reflecting their complex administration requirements and typically suit high net worth investors with specific investment needs.

What's the difference between a full SIPP and a platform SIPP?

The distinction between a full SIPP and a platform SIPP is the range of investments the SIPP offers, and the associated cost that brings.

Platform SIPPs:

Platform SIPPs offer access to thousands of funds, investment trusts, ETFs, individual shares, and bonds, covering all mainstream investment needs. They're administered through online platforms with streamlined processes designed for efficiency.

• Investment range: Shares listed on major exchanges, thousands of funds covering all asset classes and regions, ETFs and investment trusts, corporate and government bonds, cash holdings.
• Fee structure: Platform fees can range anywhere from 0.10% to 0.45% a year, while dealing charges might range from £2 to £12 per trade.
• Best for: The vast majority of SIPP investors who want broad investment choice without needing specialist assets.

Full SIPPs:

Full SIPPs include everything that platform SIPPs offer, plus specialist investments requiring complex administration. These providers employ specialist teams to handle unusual assets and regulatory requirements.

• Additional investment options: Commercial property (offices, warehouses, retail units), unlisted securities and private equity, structured products and derivatives, overseas property in some cases, loan notes and other alternative investments.
• Fee structure: Platform fees similar to platform SIPPs (0.25% to 0.45%), but with substantial additional charges for specialist assets. Property holding fees might be up to £600 per property annually, while property transaction fees could range between £500 and £2,000 per purchase or sale.
• Best for: Investors with large pensions (£250,000 or more) who specifically need to hold commercial property or other specialist investments. For everyone else, the additional costs aren't justified.

Unless you have specific plans to hold commercial property or other specialist investments, a platform SIPP provides more than enough investment choice at lower cost. Paying for capabilities you'll never use will erode your retirement savings unnecessarily.

For more details on the differences between these SIPP types, see our guide on What is a SIPP?

Why does choosing the right SIPP provider matter?

The difference between a well-chosen SIPP and a poorly chosen one can amount to tens of thousands of pounds over the lifetime of your pension.

For instance, a provider charging 0.45% annually on a £200,000 pension costs £900 a year. If another provider was charging 0.25% then the same £200,000 in that SIPP would cost £500 annually, saving you £400 a year. Over the course of 25 years, and assuming 5% compound annual growth, that seemingly small cost difference would reduce your total pension pot by over £19,000.

And of course, it’s not just costs. If your chosen provider doesn't offer the specific funds or shares you want to hold, then you'd need to either compromise on your investment strategy or go through the disruption of transferring to another provider later.

How does my age or pot size affect which SIPP is best for me?

Different SIPPs might be more suitable during some life stages than others:

• In your 30s and 40s: Prioritise low ongoing costs and good fund selection for long-term wealth accumulation. Service quality matters less as you're contributing and investing rather than taking withdrawals.
• In your 50s: Balance cost with platform quality and investment choice as your pension grows larger. Start evaluating drawdown facilities even if you won't need them for years.
• In your 60s: Prioritise strong drawdown services, clear tax information, and flexible income options. Slightly higher fees might be justified for excellent drawdown functionality and support.

The size of your pension pot will also influence your decision making when you’re comparing SIPPs, because different SIPP fee structures suit different pot sizes.

• Smaller pensions (£60,000 or less): SIPPs with a percentage-based fee structure are likely to prove more cost effective when you have a smaller pension pot.
• Medium pensions (£60,000 to £120,000): Most of the SIPPs that have a fixed-price fee structure are likely to cost a similar amount in real terms to a percentage-based SIPP when you have a medium-sized pension pot.
• Large pensions (over £120,000): Flat fees or capped percentage fees are likely to be a much cheaper option if you have a larger pension pot.

Do all SIPPs work the same way?

While all SIPPs follow the same underlying pension rules, there can be some operational differences as providers implement those rules differently within their own platforms.

• Investment execution: Different providers might execute trades at different times of day, with varying speed and at different prices. Some offer real-time trading, others might batch trades once a day.
• Contribution processing: Some providers credit contributions and tax relief within days, while others might take weeks. Processing speed affects how quickly your money gets invested and starts growing.
• Drawdown arrangements: Setting up drawdown and taking income works differently across providers. Some make it simple with a few clicks online, others require forms and phone calls with processing taking days or weeks.
• Transfer processes: The ease and speed of transferring pensions in or out varies enormously. Some providers have dedicated transfer teams handling everything smoothly, others provide minimal support making transfers painful.
• Platform design: Interface quality, mobile app functionality, and ease of finding information can differ from one SIPP platform to the next. Some platforms from newer ‘challenger’ brands might be more intuitive and modern, while others from legacy providers might sometimes feel a bit outdated and clunky.
• Customer service: Response times, helpfulness, and knowledge levels also vary. Some providers answer queries within minutes, others might take days.

These operational differences can affect your experience of managing your SIPP with a particular provider, even though the underlying SIPP rules remain the same across them all.

What types of charges do SIPPs have?

Understanding the full range of potential charges helps you calculate your true costs rather than being misled by headline rates.

Platform fees (flat vs percentage)

Platform fees (also called account fees or administration fees) are the main ongoing charge for holding your SIPP. The fee structure for these particular charges can be percentage-based (with or without a cap), flat fees, or a tiered fee structure.

Percentage-based fees: Charged as a percentage of your pension pot, these can range from 0.10% to 0.45% a year.

• Advantages: Affordable for smaller pension pots, costs scale with pot size, no sudden jumps in charges.
• Disadvantages: Can become expensive on large pensions, costs increase even if service doesn't improve, no upper limit unless capped.

Flat fees: Fixed charges regardless of pot size, often ranging from £100 to £300 a year.

• Advantages: Very cost-effective for large pensions, offering predictable annual costs, simple to understand.
• Disadvantages: Expensive for small pensions, doesn't scale with the value you're receiving.

Tiered fees: Some providers offer a tiered fee structure, with lower percentages charged as the size of your pension pot increases. For example, 0.35% on the first £250,000, 0.25% on the next £250,000, 0.10% above £500,000.

• Advantages: Balances affordability for smaller pots with cost control for larger ones.
• Disadvantages: More complex to calculate, requires understanding breakpoints.

Trading fees (shares, ETFs, funds)

Every time you buy or sell investments, you might pay  trading fees (also known as dealing charges) that accumulate over time.

• Share dealing: Fees can range anywhere from £2 to £12 per trade for UK shares, with some providers charging more for international shares.
• Fund dealing: Cheaper than share dealing (often as little as £1 or £2 per fund trade), with many providers offering free fund dealing to encourage long-term investing.
• ETF dealing: Charged the same as share trades.
• Regular investment charges: Many providers offer free or reduced-cost dealing for regular monthly investments, making this the most cost-effective way to build positions.

Trading fees matter more for active investors making frequent trades. If you trade 20 times a year at £7.50 each, you're paying £150 annually just for trading. By contrast, someone making 4 trades a year pays just £30 for their trades.

Transfer fees (in and out)

When you transfer pensions into or out of your SIPP, some providers charge fees for processing those transactions.

• Transfer-in fees: Most providers don't charge a fee for accepting pension transfers into your SIPP.
• Transfer-out fees: Charges for moving your SIPP to another provider are more common, and usually range anywhere from £0 to £200, with some providers charging per holding transferred (£10 to £25 per investment).
• In-specie transfer fees: Moving investments without selling them sometimes incurs higher charges than cash transfers, though many providers include this as part of standard service.

Always check transfer-out fees before opening a SIPP, as knowing you can leave without penalty provides valuable flexibility if better providers emerge or your financial circumstances change.

Admin fees (e.g. for commercial property, drawdown)

Specialist assets sometimes trigger additional administrative charges beyond standard platform fees, so it’s important to be aware of them if you have a full SIPP, and even with a SIPP lite you still might incur admin fees for some things.

• Property holding fees: If your SIPP holds commercial property, expect to pay £200 to £600 per property each year, plus transaction fees of £500 to £2,000 per purchase or sale.
• Corporate action fees: Some providers charge for processing corporate actions like takeovers or rights issues, although many include this in the platform fees.
• Drawdown fees: Setting up flexi-access drawdown might cost £100 to £300 with some providers, although many include this for free. Ongoing drawdown administration might cost £50 to £150 annually, or be included in the platform fees.
• Income payment fees: Taking income might cost £10 to £25 per payment, though many providers offer free regular monthly payments.
• Paper statement fees: Some providers charge £20 to £50 annually if you want paper statements rather than electronic ones.

For more comprehensive information about SIPP charges, see our guide to SIPP rates and charges.

What's the difference between flat fees and percentage-based fees?

SIPPs with a percentage-based fee structure often prove to be more cost effective for people with smaller pension pots, whereas SIPPs with flat fees tend to be a cheaper option for people with bigger pensions.

Let’s look at an example:

Comparing a SIPP with a £200 flat annual fee vs one with a 0.35% percentage fee

• On £50,000: The flat fee costs £200 (0.40%), while the percentage-based fee costs £175 (so percentage-based pricing is the cheaper option)
• On £100,000: The flat fee costs £200 (0.20%), the percentage fee costs £350 (flat fee is cheaper)
• On £300,000: The flat costs £200 (0.07%), the percentage fee costs £1,050 (flat fee is significantly cheaper).

When flat fees are better: For pensions over £60,000, flat fees often cost less than percentage fees. The larger your pension, the more you save with flat fees.

When percentage fees are better: For pensions under £60,000, percentage fees usually cost less. The smaller your pension, the more you save with percentage fees.

The crossover point: Calculate where flat and percentage fees cost the same amount. For a £200 annual flat fee vs 0.35% percentage fee, they're equal at approximately £57,000. Below this, percentage fees are cheaper. Above this, flat fees save money.

That’s why it’s important to review your fee structure as your pension increases. You might start with a percentage-fee provider when your pot is £30,000, then switch to a flat-fee provider when it reaches £100,000 and the savings justify the transfer hassle.

How do charges affect small, medium, and large pension pots differently?

Identical fee structures can create vastly different costs depending on your pension’s size. Let’s compare two hypothetical SIPP providers (one with a 0.35% percentage-based platform fee with a cap at £500, and the other with a £12.99 monthly flat fee) and see how they fare for different pot sizes.

Small pots (£30,000 example):

Provider A (0.35% platform fee + £7 per trade, 4 trades per year):

• Platform fee: £105
• Trading costs: £28
• Total: £133 (0.44% of pot)

Provider B (£12.99 monthly flat fee + £4 per trade, 4 trades per year):

• Platform fee: £156
• Trading costs: £16
• Total: £172 (0.57% of pot)

Winner: Provider A saves the pension holder £39 a year (0.13% of their pot value)

Medium pots (£150,000 example):

Provider A (0.35% platform fee + £7 per trade, 6 trades per year):

• Platform fee: £525
• Trading costs: £42
• Total: £567 (0.38% of pot)

Provider B (£12.99 monthly flat fee + £4 per trade, 6 trades per year):

• Platform fee: £156
• Trading costs: £24
• Total: £180 (0.12% of pot)

Winner: Provider B saves the pension holder £387 a year (0.26% of their pot value)

Large pots (£500,000 example):

Provider A (0.35% platform fee capped at £500   + £7 per trade, 8 trades per year):

• Platform fee: £500 (cap applies)
• Trading costs: £56
• Total: £556 (0.11% of pot)

Provider B (£12.99 monthly flat fee + £4 per trade, 8 trades per year):

• Platform fee: £156
• Trading costs: £32
• Total: £188 (0.04% of pot)

Winner: Provider B saves the pension holder £368 annually (0.07% of their pot value)

These examples demonstrate why it’s so important to calculate costs for your specific situation rather than assuming one provider is always cheaper.

What can I invest in with a SIPP?

SIPPs offer a very broad range of investment choice compared to workplace pensions, although the actual investments you’ll have to choose from will vary by provider.

Platform SIPPs will all allow you to hold:

• Funds and ETFs: Thousands of unit trusts, OEICs, investment trusts, and exchange-traded funds covering every asset class, geographic region, and investment strategy imaginable. Most investors build portfolios primarily from these options.
• Individual equities: Individual company shares listed on major stock exchanges including the London Stock Exchange, FTSE indices, and often international exchanges like New York, European markets, and Asian markets. This allows constructing portfolios of specific companies you've researched.
• Bonds: Corporate bonds from UK and international companies, UK government bonds (gilts), international government bonds, bond funds offering diversified fixed income exposure. Bonds provide income and diversification from equities.
• Cash: All SIPPs include cash facilities for holding money awaiting investment, receiving dividends, or maintaining liquidity. However, holding excessive cash long-term defeats the purpose of pension investing as inflation erodes real value.

In addition, some full SIPPs also allow you to hold commercial property, unlisted securities, or other alternative assets in your SIPP, although you’ll pay significantly more in order to have access to these assets.

For most investors, the combination of funds, ETFs, shares, and bonds available through platform SIPPs provides more than enough choice to build well-diversified portfolios aligned with any investment strategy.

Do all SIPP providers offer the same investment options?

No, investment options can vary quite a bit between providers, making this a really important consideration when you’re comparing SIPPs.

All SIPP providers allow you to invest in UK shares, major investment funds, and popular ETFs covering mainstream markets and strategies. The assets that SIPP providers are more likely to differ on are:

• International shares: Some providers offer extensive international market access (US, European, Asian markets), others limit you to UK shares only or charge premium fees for overseas trading.
• Number of funds: Leading providers might offer 3,000 or more funds, while some smaller providers might offer only a few hundred, potentially excluding specific funds you want to hold.
• Investment trusts: Most providers offer good investment trust selection, but some discount platforms have limited ranges.
• Bonds: Individual bond holdings are less common, with many platform SIPPs only offering bonds through bond funds rather than direct ownership.
• Commercial property: Only full SIPPs allow direct property ownership, with platform SIPPs excluding this asset class entirely.
• Alternatives: Private equity, unlisted securities, and structured products are restricted to specialist full SIPPs.

Why do some providers restrict certain asset classes?

Some providers limit their range of investment options because of regulatory complexity, administration costs, custody requirements, and their target customer profile.

• Regulatory complexity: Assets like commercial property require specialist administration, valuations, and regulatory expertise. Many providers choose not to offer these assets rather than building the infrastructure needed.
• Administration costs: Holding unusual assets incurs substantial costs. Providers focusing on mass-market customers exclude expensive-to-administer assets, keeping fees low for mainstream investors.
• Risk management: Some providers restrict high-risk or illiquid investments to protect customers from unsuitable choices. While this limits freedom, it prevents investors from making potentially disastrous decisions.
• Custody arrangements: Certain investments require specific custody relationships or nominee structures. Providers without these arrangements can't offer those investments.
• Target customers: Discount providers targeting cost-conscious investors deliberately limit ranges to what can be administered cheaply and efficiently, passing savings to customers through lower fees.

How do I know if the investment range suits my needs?

Before choosing a provider, you should verify that they offer the specific investments you want to hold.

Start by making a list of specific funds, shares, or asset classes you intend to hold. You can then search for these on potential providers' platforms to confirm availability.

It’s also important to check your access to international assets. If you want to invest in US, European, or Asian markets, you’ll need to confirm that the provider offers these markets and check dealing charges for international trades.

It’s also worth considering what investments you might want access to in the future, even if you aren’t planning to invest in those assets right now.

On the other hand, there’s no point choosing an expensive full SIPP offering commercial property if you already know you'll never hold property in your SIPP.

Can I set up automatic contributions and regular investing?

Yes, most SIPP providers support regular contributions and investing, and some offer free or reduced dealing charges for these regular monthly investments in order to encourage more frequent SIPP contributions.

Regular investing with free dealing could potentially save you hundreds of pounds a year compared to making monthly trades with standard dealing charges.

Can I switch my SIPP investments or rebalance my portfolio?

Yes, you can change your SIPP’s investments at any time, including rebalancing your holdings if the success of some assets means it has become poorly diversified.

• Selling investments: You can sell any holdings by placing sell orders, with proceeds returning to your SIPP cash account (usually within 3 to 5 business days for funds, instantly for shares).
• Buying replacements: Once sale proceeds clear, you can purchase different investments, restructuring your portfolio as your strategy evolves or circumstances change.
• Rebalancing: Periodically selling outperforming assets and buying underperforming ones maintains your target allocation. Most investors rebalance annually or when allocations drift significantly from targets.

Of course, it’s important to remember that each trade can incur dealing charges , so switching between investments too frequently erodes your pension. Efficient rebalancing means making necessary changes without unnecessary trading.

What should I be looking out for in a SIPP provider?  

In addition to fees and investment choice, there are several other factors you should weigh up when you’re comparing SIPPs.

Service and support

Customer service quality can vary a lot between providers, affecting how easily you resolve issues, get questions answered, and access help when needed.

• Response times: Leading providers respond to emails within hours and answer phone calls within minutes, whereas some poor providers might take days to respond.
• Transfer support: Providers with dedicated transfer teams make moving pensions smooth and straightforward.
• Reviews and reputation: Check independent review sites like Trustpilot, Which?, and financial forums to understand real customer experiences.

Fees

While we've already covered fee structures, the total cost picture includes factors beyond headline rates.

• All-in costs: Calculate your true total cost including platform fees, dealing charges based on your expected trading frequency, and average fund OCFs for the investments you'll hold.
• Fee caps and tiers: Understand whether fees are capped and at what levels. Caps become increasingly valuable as your pension grows.
• Hidden charges: Watch for charges buried in detailed fee schedules like corporate action fees, overseas payment charges, paper statement fees, or currency conversion costs that aren't obvious from headline rates.
• Drawdown charges: If you're approaching retirement, include drawdown setup fees, ongoing administration charges, and income payment costs in your calculations.
• Exit fees: Factor in transfer-out fees when comparing providers. Being able to leave without penalty if better options emerge provides valuable flexibility.

Comparing functionality and flexibility

Platform capabilities beyond basic investment holding can affect how easily you manage your SIPP and implement your strategy.

Online tools and user interface quality

Platform design can influence your daily experience of managing your pension, with poor interfaces creating unnecessary friction and frustration.

Many providers allow you to explore demo versions or log in as a prospective customer. If that’s an option when you’re comparing SIPPs then you should use that opportunity to evaluate whether you find each provider’s interface intuitive and user friendly.

Research and screening tools (fund filters, Morningstar data, ESG ratings)

Investors selecting their own investments can benefit from the right research tools, and some SIPP platforms have these built in as standard.

Valuable research features worth looking out for include:

• Fund screening tools filtering by asset class, geographic region, charges, performance, and risk ratings
• Morningstar ratings and analyst reports on funds
• Share research including analyst recommendations, financial data, and company news
• ESG (Environmental, Social, Governance) ratings for sustainable investors
• Performance charts comparing funds or shares against benchmarks
• Portfolio analysis tools showing your asset allocation, geographic exposure, and sector concentration.

It’s worth noting that providers offering these types of premium research solutions sometimes charge higher platform fees to reflect the cost of providing these tools and data feeds. You should decide whether or not you’re likely to actually use these research tools before paying premium pricing for them.

Ease of rebalancing portfolios

Rebalancing maintains your target asset allocation as markets move, but some SIPP platforms make this easier to achieve than others.

The SIPP platforms with the best features for portfolio rebalancing are likely to provide:

• Clear portfolio analysis showing current vs target allocations
• Automatic rebalancing services adjusting your portfolio periodically
• Batch trading allowing simultaneous sale and purchase instructions
• Rebalancing calculators showing required trades to reach targets
• Historical tracking of portfolio drift.

It’s also important to consider the cost of rebalancing. Each trade could incur dealing charges , so efficient rebalancing means minimising trades while maintaining appropriate allocations. Providers that offer free fund dealing will make rebalancing much cheaper to achieve.

Automatic investing features (regular investing, dividend reinvestment)

Automation can reduce the effort required to maintain (and grow) your SIPP. Some examples of automatic investing features include:

• Regular investing: Automatic monthly purchases of specified funds or ETFs, removing the need to remember to invest each month while potentially providing free or reduced dealing charges.
• Contribution investing: Automatically investing contributions as they arrive rather than holding cash, ensuring your money starts working immediately.
• Dividend reinvestment: Automatically using dividend payments to purchase additional shares or fund units rather than accumulating as cash, maintaining full investment and benefiting from compound growth.

Access to international markets

For investors wanting exposure beyond the UK, international market access and associated costs can vary between providers.

SIPP platforms with more comprehensive international access might offer:

• Direct share trading on US exchanges (New York Stock Exchange, NASDAQ)
• Access to European markets (Germany, France, Netherlands, Switzerland)
• Access to Asian markets (Japan, Hong Kong, Singapore)
• Access to emerging markets
• Currency trading or automatic currency conversion.

Other SIPPs might offer a slightly more limited approach to international markets, such as:

• Higher dealing charges for international trades (£15 to £25 for overseas investments vs £5 to £10 for the UK, for instance)
• UK shares only, with international exposure available through funds
• US markets only with no European or Asian access
• Limited fund selection from international managers.

It’s important to remember that trading international shares involves a currency conversion, and providers charge different spreads on the foreign exchange. Some offer competitive FX rates, while others might add significant margins that increase your costs.

Comparing service and support

The quality of a SIPP provider’s customer service can affect your experience whenever you need assistance or encounter issues, so it’s worth comparing service quality when you’re comparing SIPPs.

Customer service reputation

It’s a good idea to research independent reviews and ratings to understand providers' service quality from real customer perspectives.

• Trustpilot: Independent customer reviews showing overall satisfaction and specific experiences. Look for patterns in complaints rather than isolated incidents.
• Which? reviews: Comprehensive provider assessments including service quality ratings, fee analysis, and comparative rankings.
• Financial forums: Communities like the MoneySavingExpert forums, where investors discuss real experiences with providers, particularly around problem resolution.
• FCA complaints data: The Financial Conduct Authority publishes complaint statistics showing how many complaints providers receive relative to their customer base and how well they resolve them.

Speed of transactions (transfers, withdrawals)

Transaction speed affects how quickly you can move money, access funds, or complete transfers.

• Contribution processing: Many providers process contributions within 2 to 3 business days with tax relief appearing within a week. Some slower providers might take 5 to 10 business days, delaying when your money actually gets invested.
• Trade execution: Real-time trading executes share and ETF trades immediately at current market prices. Batch trading executes once a day, meaning your trade might execute hours after you placed it (and possibly at a very different price).
• Withdrawal processing: Fast providers might process withdrawal requests as quickly as 3 to 5 business days, whereas slower providers might take several weeks, problematic if you need funds quickly.
• Transfer timescales: As with withdrawals, some providers are faster than others when it comes to transferring your pension funds to a new provider.

Speed matters most when you're actively managing your portfolio, approaching retirement and taking withdrawals, or consolidating multiple pensions where extended transfer times mean you’re uninvested for longer periods.

Access to advisers or guidance

Some SIPP providers offer financial advice or guidance beyond just holding your investments.

• Financial advice: Some SIPP providers might offer full FCA-regulated advice on whether a SIPP suits you, how much to contribute, what to invest in, and retirement planning. This advice will cost extra, but if you’re apprehensive it might help to know that it’s an option.
• Robo-advice: Many SIPP providers are increasingly offering automated investment services that use algorithms to create and manage portfolios based on your risk capacity, age, and retirement goals. These suit investors wanting professional management without paying a premium for human advisers.
• Guided services: Some providers offer "guided" portfolios where you answer questions about goals and risk tolerance, then receive model portfolio recommendations without full advice. This costs less than advice but provides more direction than completely self-directed investing.
• Educational guides: Many providers offer guides, webinars, articles, and tools helping you learn about investing and pensions without providing personal advice.

Comparing drawdown facilities

If you're approaching retirement or already taking income, a SIPP provider’s drawdown capabilities (and any associated fees) will become more important.

How easy providers make income drawdown

Setting up and managing drawdown varies from simple online processes to complex form-based procedures requiring phone calls.

Charges for setting up and running drawdown

Drawdown fees add to your costs throughout retirement, making them particularly important for people approaching pension age.

Some possible drawdown charges SIPP providers might charge include:

• Drawdown setup fees: This could range from £0 to £300, with many modern providers including this for free.
• Annual administration: The fee for ongoing drawdown administration could range anywhere from £0 to £150, with many providers now including this within standard platform fees rather than charging extra.
• Per-payment charges: Some providers charge for every payment, others offer free regular monthly income with charges only for ad-hoc lump sums.

When you’re comparing SIPPs, it’s important to factor these additional costs into that comparison. A provider charging a 0.20% platform fee plus £15 per income payment might end up costing more than a competitor charging 0.30% with free payments, depending on your pension size and withdrawal frequency.

Tools for managing withdrawals and tax estimates

SIPP providers might offer a range of different tools and calculators to help pension holders manage their drawdowns.

• Income calculator: Shows how long your pension might last based on different withdrawal rates and investment return assumptions, helping you set sustainable income levels.
• Tax calculator: Estimates income tax on withdrawals based on your total income, helping you avoid accidentally pushing into higher tax bands.
• Scenario modelling: Tests different withdrawal strategies (constant income vs varying amounts) showing potential outcomes under different market conditions.
• Emergency tax reclaim assistance: Helps you reclaim overpaid tax when first withdrawals trigger emergency tax codes, providing necessary forms and guidance.
• Sequence of returns visualisation: Shows how market returns in different orders affect pension sustainability, illustrating the importance of maintaining flexibility during poor market periods.

Minimum withdrawal amounts and admin flexibility

Some providers impose restrictions on how you can take income, limiting your flexibility.

• Notice periods: Some providers require advance notice (5 to 10 business days) for ad-hoc withdrawals, limiting your ability to access funds quickly if circumstances change.
• Minimum withdrawal amounts: Some providers might require minimum withdrawal amounts (for example, £500 to £1,000 per payment), preventing you from taking smaller amounts if that's all you need.
• Payment frequency restrictions: Some providers might limit income payments to monthly or quarterly.

Security and regulation

Understanding regulatory protections and provider financial stability helps ensure your pension is safe.

FCA regulation and FSCS protection (£85,000 per firm)

All SIPP providers must be authorised and regulated by the Financial Conduct Authority, and each of their SIPPs offers compensation through the Financial Services Compensation Scheme if the provider goes bust, so the key is to ensure you don’t choose an illegal provider that isn’t FCA-authorised.

However, you can also double check each provider’s individual track record with FCA compliance (including any penalties or fines they might have received for breaching compliance rules) by reviewing their entries in the FCA Register.

Custodian arrangements

FCA rules require SIPP providers to segregate client assets completely from the firm's own money and investments. If the provider fails, your investments should be clearly identifiable as yours rather than being mixed with the provider's own assets.

Most providers use nominee companies to hold investments on customers' behalf. You're the beneficial owner and control the investments, but they're registered in the nominee's name for administrative efficiency. Some providers use their own nominee companies, others use third-party custodians. Both approaches work provided proper segregation is maintained and the custodian is financially stable.

Past provider failures and what happened to client money

While SIPP provider failures are relatively rare, it does happen occasionally.

• What happens to customer assets: When a SIPP provider goes bust, customer investments should be protected because they’re ring-fenced and held separately from the provider’s own assets.
• Transfer to alternative providers: When possible, the FCA arranges for failing providers' customer books to be acquired by stable providers, with customers' SIPPs transferring seamlessly to the new provider.

In 2022, the FCA introduced the Investment Firms Prudential Regime (IFPR), which applies to a broad range of investment firms, including SIPP operators. The IFPR moves the focus of prudential requirements towards mitigating the potential for harm a firm can cause to consumers and markets, by introducing more stringent capital adequacy requirements and requiring providers to complete an Internal Capital and Risk Assessment (ICARA) process.

Comparing SIPPs by life stage

Your age (and specifically, what your age indicates about how close you might be to retirement) should probably factor into your decision making when you’re comparing SIPPs.

In your 30s: Low-cost platform SIPPs best for small to medium pots, growth focus

In your 30s, you're likely building your pension from a modest base with decades still to go until retirement, which means lower costs and long-term growth potential are likely to be your main priorities.

At this age you’ll likely focus on equity-heavy growth portfolios through low-cost funds, accepting short-term volatility for long-term returns.

What to look for in a SIPP provider when you’re in your 30s:

• Low percentage-based fees (0.20% to 0.30%) suitable for smaller to medium-sized pots
• Free or cheap fund dealing for regular monthly investing
• Good selection of low-cost index funds and global equity funds
• A simple, efficient SIPP platform without expensive extras you won't use.

In your 40s: Balancing cost with tools to manage increasingly complex portfolios

Your 40s often bring larger pensions, higher incomes enabling bigger contributions, and potentially more sophisticated investment strategies requiring better tools.

What to look for in a SIPP provider when you’re in your 40s:

• Competitive fees appropriate for your growing pot size (0.25% to 0.35% or flat fees if your pot exceeds £80,000)
• Good research and screening tools for selecting between similar funds
• Portfolio analysis showing asset allocation and diversification
• Flexible regular investing and rebalancing capabilities.

In your 50s: Importance of strong drawdown services, clarity of fees

For some people in their 50s retirement might be just a few years away, which means a SIPP provider’s drawdown capabilities will become increasingly relevant at this age, alongside continued growth and cost control.

At this age, SIPP holders will also be more likely to move a large proportion of their pension into fixed income assets like bonds.

What to look for in a SIPP provider when you’re in your 50s:

• Good selection of bond funds alongside equity choices
• Clear, transparent fee structure including drawdown charges
• Excellent drawdown tools and income planning calculators
• Strong tax information and guidance
• Responsive customer service for retirement planning queries
• Flexible crystallisation and income options.

In your 60s: Income flexibility, inheritance options, avoiding unnecessary complexity

When retirement is fast approaching, drawdown functionality, income flexibility, and simplicity become paramount, while fixed income assets will be more important for capital preservation.

What to look for in a SIPP provider when you’re in your 60s:

• Good selection of bond funds
• Excellent drawdown facilities with flexible income scheduling
• No or minimal income payment charges
• Simple beneficiary nomination and death benefit processes
• Responsive customer service (since you'll probably interact with them more frequently at this age)
• Easy-to-understand statements and valuations.

SIPP comparison framework

Use a structured approach to compare providers systematically rather than being overwhelmed by options.

Checklist of criteria to compare (fees, choice, service, functionality, drawdown, security)

Work through each category methodically, scoring providers on factors relevant to your circumstances.

Weighting what matters most for you

Different factors might matter more than others depending on your own individual circumstances, so you should weight your SIPP comparison accordingly.

Weighting by pension size:

• Small pots: Fees matter most, followed by investment choice, functionality and service.
• Medium pots: Fees and investment choice could be the most important factors, although functionality and customer service might also be important.
• Large pots: Fees are still important with large pots, but customer service and how the provider operates drawdown are likely to become increasingly important.

Weighting by life stage:

• 30s and 40s: Fees are likely to be most important at this life stage, although investment choice will often be a close second.
• 50s: Again, fees will probably be the most important factor, although drawdown will now be an increasingly important consideration too, and the range of investment options will also be important.
• 60s: Drawdown (and any drawdown fees) are likely to become a priority at this age, with other fees also continuing to be important because higher fees could erode your accumulated wealth.

Red flags when comparing

Certain warning signs should make you think twice about a particular provider, regardless of how attractive their fee structure or other SIPP features might appear.

Regulatory red flags:

• Not FCA authorised
• Recent regulatory fines or enforcement actions.

Fee structure red flags:

• Hidden charges buried in lengthy terms and conditions
• Frequent fee increases year after year
• High exit penalties making it expensive to leave
• Unclear total cost with important charges not disclosed upfront.

Service red flags:

• Consistently bad reviews across multiple review sites
• High complaint rates.

Investment red flags:

• Offering investments not available elsewhere at suspiciously attractive terms
• Pressure to invest in particular assets rather than leaving the choice up to you
• Pushing specific high-risk or unusual investments.

Operational red flags:

• Outdated technology with frequent system failures
• Minimal security features (no two-factor authentication, weak password requirements)
• Difficulty reaching customer service or getting responses.

If a provider shows multiple red flags, it might be a good idea to keep comparing SIPPs. There are many providers to choose from so you don’t need to settle for poor service or operational issues just to access cheaper SIPP fees.