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Reducing charges with a SIPP.

Hi, I have a Pension fund of £46000 and the charges are 1% of the fund value per year. I only pay in £615 per year including tax relief so am I right in thinking that there is only £155 going into my fund after charges and if so would I not be better off paying that into a Best invest low cost SIPP investing in low cost index funds to keep the charges as low as possible and using salary sacrifice?

Comments

  • dunstonh
    dunstonh Posts: 121,175 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I only pay in £615 per year including tax relief so am I right in thinking that there is only £155 going into my fund after charges

    No you are not correct. £615 will be going in.
    so would I not be better off paying that into a Best invest low cost SIPP investing in low cost index funds to keep the charges as low as possible and using salary sacrifice?

    Depends on the charges. a stakeholder or personal pension may be better.
    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.
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