SIPP advice needed

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
2 replies 581 views
D_DickensonD_Dickenson Forumite
206 Posts
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2 years ago I opened a SIPP and invested £50,000 in it with the intention of investing more each year. The annual fees for the management of the SIPP are approx £700 a year which is fixed regrdless of how much is invested.

The money had been invested in a 5 year bond (4 years left now). My circumstances have changed a bit now and I don't really see any more contributions being made in the near future so I was wondering if I really need to pay for the SIPP to be managed any more. I imagine it will just sit there for the next 4 years at which point something will need to be done but in the meantime could I manage it myself and stop paying the company?

Is it possible I have comitted my self to management fees with this company until I retire (I am 35) or do I definately have the right to end my relationship with the pension management firm?

Replies

  • dunstonhdunstonh Forumite
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    or do I definately have the right to end my relationship with the pension management firm?

    Depends on the terms of the contract and the service you bought. Take a read of those and you should have your answer.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Myrmidon_JMyrmidon_J Forumite
    287 Posts
    An annual fee of £700 - presumably for administration only - on a £50,000 investment sounds incredibly expensive to me. In fact, we have clients with over £500,000 invested paying significantly less.

    You'd need to generate a return of 1.40% per annum (net of other costs, e.g. fund AMCs, or professional advice) just to stand still.

    As dunstonh says, you should find the answer to your questions in the product terms and conditions... Regardless, there are certainly cheaper options available to you.
    For the avoidance of doubt: I work for an IFA.
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