Are they keeping you in the dark?
You are probably paying more than you think for your old pensions. Research shows you could save over £10,000 in fees by transferring to interactive investor.
Many of us have older-style pensions, usually workplace pensions arranged by an employer.
But do you know how much you are actually paying in fees every year?
Most pension providers charge percentage fees. This means the fees increase as your pension grows. Over the years that adds up, reducing the final value of your pot. With an ii self-invested personal pension (SIPP) you pay a low flat fee, whatever your pension size, and over time as your pot grows this can result in significant savings, which could mean you have more money in retirement.
Independent research from the lang cat looked at how much you could save by transferring your pension out of typical workplace pensions and into a SIPP with ii.
For example, compared to a typical workplace personal pension taken out in the 2000s, you could save £20,000 over 20 years with ii’s flat fees and fund charges.
Richard Wilson, CEO, interactive investor says:
4 out of 5 pensions transferred to ii come from the major pension and life companies. The ones that spend a fortune on TV advertising with shiny black horses running around. They hope their customers won’t notice they are being quietly ripped off, and best of all, when they change jobs they will leave their pension behind and forget about it. Our customers won’t fall for that. They want a simple, transparent service where they have full control of their financial future.
How saving on fees can add up
Hypothetical case studies, based on industry statistics, highlight some of the potential cost savings from switching older-style pensions to interactive investor.
Hilary moved her £180,000 workplace pension from a previous employer to ii, potentially saving over £8,000 in fees and adding an extra £10,000 to her pot over 12 years.
Satpal transferred his £230,000 pension from a traditional pension company to ii, potentially saving over £19,000 in fees and adding an extra £27,000 to his pot over 15 years.
Lena moved two workplace pensions totalling £200,000 to ii, potentially saving over £10,000 in fees and adding an extra £12,933 to her pot over nine years.
Could you save £1,000s in fees?
You’ll need to review the costs of your own pension to discover exactly how much you might save, but the findings of our study are clear. If you have built up a good pension and are confident making your own investment decisions, you could be significantly better off with an ii SIPP.
Use our toolkit to find how to review your old pensions.
Open a SIPP or add one to your existing account.
Act now and save an extra £70
Open a SIPP by 31 August 2020 and pay no SIPP fee until April 2021. This means your service plan fee covers you for all of your investment accounts. Following the offer period, the ii SIPP fee is only £10 a month more. Terms apply
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£0 SIPP fee promotion terms and conditions¹
- No SIPP fee shall be charged to all new ii SIPP accounts until April 2021 (the “Offer”) that are opened from and including 3 March 2020 to and including 31 August 2020¹ (the “Offer Period”). This shall include instances where a participant has submitted a full and complete application for a new ii SIPP account during the Offer Period but the account is not yet opened, where such delay is not attributable to the acts or omissions of the participant.
- The Offer is open to new and existing customers.
- These terms and conditions should be read in conjunction with the ii SIPP Terms. In the event of a conflict between these terms and conditions and the ii SIPP Terms, these terms shall prevail.
- After the Offer has ended, the SIPP fee you will be required to pay will be as set out in our Rates and Charges.
- All other fees, for example a drawdown fee which is applied once you start to take retirement benefits, are not subject to this Offer and shall continue to apply notwithstanding.
- We reserve the right to alter, withdraw or amend this Offer and/or these terms and conditions at any time without prior notice.
- All participants to this Offer agree to be bound by these terms and conditions.
- Interactive Investor Services Limited (“IISL”) is the promoter of this offer. The registered office for IISL is Exchange Court, Duncombe Street, Leeds LS1 4AX.
¹ Updated 31 July 2020