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So What Does It All Cost?

Our charges are explicit and are set at a level to reflect the amount of work involved. Everyone pays their fair share of the administration costs and you will see that the charges become cost effective at a low threshold of contribution input or fund size.

Pricing Structure (Effective From 6 April 2015)
Establishment & Administration
Establishment Charge Nil
Transfer in of another registered pension scheme £60 per transfer
Quarterly administration charge (Note 1)
Fund ValueCharge
Nilto£25,000£25
£25,000to£50,000£35
£50,000  and above£45
Transaction charge (See Investment Charges below) Nil
Change of stockbroker £50
Insufficient Funds e.g. to pay benefits or charges £25

Benefits
Flexi-access drawdown at all ages and capped drawdown before age 75 (Note 2)
Capped drawdown from age 75 onwards (Note 2)
£150 per annum, payable annually in advance
£250 per annum, payable annually in advance
Designation of additional funds to existing income drawdown (Note 3) £75
Conversion from capped to flexi-access drawdown £75
One-off uncrystallised funds pensionlump sum payment £75
Payment of death benefits Time/cost basis
Transfer out to another registered pension scheme, or annuity purchase (Note 5) £75
Closure of your SIPP through taking flexi-access drawdown or
uncrystallised funds pension lump sums (Note 6)
£250

Notes

  1. Payable in arrears at the end of March, June, September and December.
  2. The annual flexi-access or capped drawdown charges will be payable immediately when funds are designated to provide flexi-access or capped drawdown, even if you elect to take "nil" income.
  3. No additional charge is made when the first funds are designated to provide income drawdown.
  4. All charges are subject to VAT in addition (currently at 20%). All charges are due to AJ Bell Management Limited and will be deducted from the SIPP cash account.
  5. To transfer out to Qualifying Recognised Overseas Pension Schemes (QROPS), the charge is 250.
  6. The closure charge will apply where flexi-access drawdown or uncrystallised funds pension lump sum payments reduce the value of your SIPP below 1,000 within 12 months of opening. We will be entitled to close your account and return the remaining funds to you, after deducting our charges. The early closure charge applies to SIPPs opened on or after 6 April 2015. For accounts opened before 6 April 2015, or closed 12 months or more after opening, an account closure charge of 75 will apply.
Interest Rates

When comparing charges between different SIPP providers, you should also compare the interest rates payable on your cash, particularly if you intend to hold significant sums of money in cash. The amount of interest paid will depend on the amount you choose to hold in cash and market interest rates. The table below shows the current interest rate that will be paid on cash held in your SIPP cash account. Please note that all cash will be held in your SIPP cash account until transferred or invested with your chosen stockbroker.

Cash balance Gross interest rate for this tier only Interest rate (AER) for this tier only
All balances 0.00% 0.00%

  • Interest rates are subject to variation and interest is paid to your account quarterly, in arrears
  • There are no routine bank transaction charges and interest is paid to your account without any deduction of tax.
  • The Annual Equivalent Rate (AER), represents the annual rate effectively received by your account if the interest at gross rate applied during a year remained in the account and itself earned interest.

Whilst not directly relevant when comparing charges and interest rates, you should be aware that AJ Bell receives payments from banks based on the aggregate cash balances held across all accounts. The amount we receive will vary depending on the total cash balances held and market interest rates. Over the foreseeable future, we expect to receive between 0.25% and 0.5% per annum above the prevailing base rate, although it may be higher or lower when interest rates are volatile. These payments are used to pay interest to your SIPP, at the rates shown on our website, we retain the amount received above this level to keep our administration charges competitive

We do not receive any payments on cash held by your chosen stockbroker.

There is currently no requirement for you to hold a minimum amount of your SIPP fund in cash, although you must always ensure that there is sufficient cash held to cover our charges, and any benefits, or other payments, when they are due for payment.

Investment Charges

For investment and dealing charges please contact your stockbroker. Investment and dealing charges are payable in addition to the charges shown above.