But don’t pay over the odds

The SIPP is a much more flexible plan but with many schemes, particularly the earlier ones, this flexibility came at a cost.

Many SIPPs have set-up charges of hundreds of pounds and in addition they have an annual charge to cover the administration of the plan. Plus, don’t forget, the investment funds within the SIPPs can also have both initial and annual management fees and these vary greatly.

Chandos Rose is an independent pensions specialist and we have been working to secure a range of plans with significantly lower charges. These plans often have no set-up charges and you only pay for the administration of the features you want – not for further refinements unless you actually use them.

For many investors using investment funds, it is now even possible to move to a low-cost SIPP with no set-up charge, little or no annual administration charge and to utilise investments with no initial charges.