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Pension costs comparison - Hilary's case study

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-Take control of your pension

Hilary could potentially add £10,000 to her pension over 12 years by switching to our self-invested personal pension (SIPP).

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Before switching

£1,116 annual charges in year one.

  • Based on 0.62% total product & investment charges.

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After switching to the ii SIPP

£636 annual charges in year one.

  • Based on a flat fee of £239.88 (£19.99 x 12) + 0.22% fund charges.

Hilary's story

Hilary spent 15 years working for a large company in a senior role. She paid into a workplace pension scheme to which her employer also made generous payments on her behalf.

Hilary is freelance now and opened an ii SIPP a couple of years ago to keep putting money aside for her retirement. Being in control of her money is important to her, so she’s looking to transfer her old workplace pot – which is worth £180,000 - into her ii SIPP. 

Hilary plans to start using her pension to support a wind down to retirement from age 60 in 12 years time. 

Hilary likes to keep costs down, so invests across 3 passively managed funds with an aggregate annual investment charge between them of 0.22%. She plans to do the same with the money moved over from her workplace pot. Her total monthly charge with ii is £19.99, which includes £9.99 for the Investor Service Plan plus a £10 SIPP fee. 

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Statistics for older pensions like Hilary's:
By 2009 there were 1.2 million people with trust-based workplace pensions to which they were no longer contributing (source: the pensions regulator).

The benefit of fair flat fees with ii

  • A £480 saving in fees in year one, without allowing for investment returns.
  • Allowing for investment growth of 5% each year Hilary could potentially save more than £8,000 in total fees and add an extra £10,000 to the value of her plan over 12 years.

This case study is for illustration only, based on independent charge comparison research from financial services consultancy, the lang cat. Find out more

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Open a SIPP

Open a SIPP or add one to your existing account.

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Act now and save an extra £60

Open a SIPP by 30 September 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

The ii SIPP is aimed at clients who have sufficient knowledge and experience of investing to make their own investment decisions and want to actively manage their investments. A SIPP is not suitable for every investor. Other types of pensions may be more appropriate. The value of investments made within a SIPP can fall as well as rise and you may end up with a fund at retirement that’s worth less than you invested. You can normally only access the money from age 55 (age 57 from 2028). Prior to making any decision about the suitability of a SIPP, or transferring any existing pension plan(s) into a SIPP we recommend that you seek the advice of a suitably qualified financial adviser. Please note the tax treatment of these products depends on the individual circumstances of each customer and may be subject to change in future.

£0 SIPP fee promotion terms and conditions¹

  1. 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 30 September 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.
  2. The Offer is open to new and existing customers.
  3. 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.
  4. After the Offer has ended, the SIPP fee you will be required to pay will be as set out in our Rates and Charges.
  5. 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.
  6. We reserve the right to alter, withdraw or amend this Offer and/or these terms and conditions at any time without prior notice.
  7. All participants to this Offer agree to be bound by these terms and conditions.
  8. 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 28 August 2020