Boost your returns
Lena could potentially add £12,933 to the value of her pension over nine years by switching to our self-invested personal pension (SIPP).
£1,620 annual charges in year one.
- Based on 0.81% annual product & investment charges.
After switching to the ii SIPP
£680 annual charges in year one.
- Based on a flat fee of £239.88 (£19.99 x 12) + 0.22% fund charges.
Lena has two older workplace plans with previous employers: one worth £120,000 and another worth £80,000. She is in a new workplace plan now and benefiting from the employer contributions.
But she is frustrated by the limited investment choice in her older workplace plans. With her investment experience, she is keen to have access to a wider investment range for her money so she has greater opportunity to boost her returns.
Lena has plans for a change of lifestyle and in nine years, at age 57, is aiming to start taking money from her pension plans. She decides to upgrade both of her older workplace plans to an ii SIPP.
Her total monthly charge with ii is £19.99, which includes £9.99 for the Investor Service Plan plus a £10 SIPP fee. She has chosen to take control and save costs by splitting her money across six passively managed funds, with an aggregate annual investment charge between them of 0.22%.
Statistics for older pensions like Lena's:
By 2012, there were over 4 million non-stakeholder workplace personal pension contracts in force (source: ABI). This is when new rules on ‘auto enrolment’ into workplace pensions came into effect. Pensions used for this now have their charges capped at 0.75%.
The benefit of fair flat fees with ii
- A £940 saving in fees in year one, without allowing for investment returns.
- Allowing for investment growth of 5% each year Lena could potentially save more than £10,000 in total fees and add an extra £12,933 to the value of her plan over nine years.
This case study is for illustration only. It is based on analysis by independent experts at The Lang Cat of ii’s SIPP charges compared to a representative charge scenario for the type of pension being transferred. The charges for any pension you transfer will depend on your personal circumstances and are likely to be different (higher or lower). Find out more. Investment returns are not guaranteed and can go down as well as up.
Start taking control
Use our toolkit to find how to review your old pensions.
Open a SIPP
Open a SIPP or add one to your existing account.
Act now and save an extra £60
Open a SIPP by 28 February and pay no SIPP fee until September 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
Promotional SIPP offer terms and conditions
- No SIPP fee shall be payable on all new ii SIPP accounts opened on or after 1 October 2020 for six calendar months (the "Fee Free Period"). After the Fee Free Period has ended, the SIPP fee you will be required to pay will be as set out in our then current Rates and Charges.
- The Fee Free Period is open to new and existing customers who open a new ii SIPP account on or after the qualifying date.
- 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.
- All other fees associated with managing your ii SIPP account shall continue to apply.
- We reserve the right to alter, withdraw or amend the Fee Free Period and/or these terms and conditions at any time without prior notice.
- All participants opening an ii SIPP account on or after 1 October 2020 agree to be bound by these terms and conditions.
- Interactive Investor Services Limited (“IISL”) is the promoter of this Fee Free Period offer. The registered office for IISL is Exchange Court, Duncombe Street, Leeds LS1 4AX.