Satpal could potentially add £27,000 to the value of his pension over 15 years by switching to our self-invested personal pension (SIPP).
£2,300 annual charges in year one.
- Based on 1% annual product & investment charges.
After switching to the ii SIPP
£1,378 annual charges in year one.
- Based on a flat fee of £239.88 (12 months x £19.99) + 0.495% fund charges.
Satpal has worked as an independent contractor for most of his career. He took out a stakeholder pension when they began in 2001 and always made it a priority to pay in. It’s now worth £230,000. Satpal’s recently taken a permanent job with one of his clients and has joined their workplace pension plan for the future, to benefit from employer contributions.
He’s an experienced investor and understands that, at higher values, paying flat fees for your pension plan can leave you with more money to invest than the percentage-based charges he’s paying for his stakeholder plan and his new workplace pension.
Satpal loves what he does. He’d like to keep working until he’s 65. In the meantime, he decides to upgrade his stakeholder pot money to an ii SIPP. His total monthly charge with ii is £19.99, which includes £9.99 for the Investor Service Plan plus a £10 SIPP fee.
Satpal decides to split his money equally between two popular funds. An ethical actively managed fund with an annual investment charge of 0.77%, and a passively managed fund with an annual investment charge of 0.22%.
Statistics for older pensions like Satpal's:
Over 1.1 million stakeholder pensions were sold between April 2001 and September 2002 alone (source: ABI, reported in the Guardian).
The benefit of fair flat fees with ii
- A £922 saving in fees in year one, without allowing for investment returns.
- Allowing for investment growth of 5% each year Satpal could potentially save £19,000 in total fees and add an extra £27,000 to the value of his plan over 15 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.
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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.