How to find the best SIPP provider in the UK

If you’re planning to start a personal pension and are considering a SIPP, you need to find the right investment platform.

Low cost is one big consideration, but not the only one, as this offers a restricted choice of funds.

Here we take a wider look at your options and the best SIPP providers in the UK.

Why choose a self-invested personal pension?

A self-invested personal pension (SIPP) provides you with control and flexibility, plus of course the tax relief you can expect when saving into a pension scheme.

A SIPP is a special type of private pension, in that you can choose in detail where your funds are invested, and even what individual assets to invest in.

It’s also a way to bring together pensions from different employers, consolidating small pension pots in one place. SIPPs are also a favourite among the self-employed, for the independent control they offer.

Learn more: SIPP contributions, rules & limits: how much can you pay in?

What should you look for when comparing SIPP providers?

The first element to consider is choice. Just how much freedom of choice do you want when it comes to selecting a range of investments?

Most SIPPs today will offer a huge range of investments, including funds, UK and overseas stocks and shares, exchange-traded funds (ETFs) and investment trusts. Many will offer ready-made portfolios, too, if you don’t want to build your own portfolio.

And if you would like to get the maximum range of investment choice allowed by the taxman, you’ll need to seek out providers who offer ‘full SIPPs.’

When choosing between SIPP providers, compare their charging structures. The platform fee charged by most companies, for example, is usually a percentage of your assets, but can be a fixed amount.

Do a like-for-like comparison on charges such as transfer fees, exit fees and trading too. These can vary considerably.

Below, we’ve collated some information about the most popular SIPP providers in the UK. 

However, when making your choice of provider and when setting up your pension in general, it’s strongly recommended that you consult a financial adviser who can help you with your overall retirement strategy.

Learn more: how many SIPPs can I have?

Who are the best SIPP providers in the UK?

Here are some of the top SIPP providers in the UK, with some at-a-glance facts and figures for comparison.

How should you choose what to buy in a SIPP?

Think of your SIPP as a kind of wrapper that is designed to contain your chosen investment options. Its overall performance will be driven by your investment choices.

One of the good things about a SIPP is that, unlike a company pension, it gives you the freedom to invest directly in stocks and shares, investment funds and commercial property. It’s a true DIY pension.

Before you invest, you’ll need to consider:

• Your level of investment experience, financial knowledge and confidence

• Whether your provider offers a smaller fixed range of investments or a wider, more flexible portfolio – SIPP companies have different funds and diverse investment strategies 

• Your financial circumstances and expectations

The options for investment when creating your own personal SIPP include these markets:

• Bonds

• Exchange Traded Funds (ETFs)

• Permanent Interest Bearing Shares

• Personalised Pension Funds

• Shares in the AIM (Alternative Investment Market) and FTSE

The key to choosing what to buy for your SIPP is research. Get to know the providers and what they offer.

Explore the risks and benefits of each market sector and fund type.

This is another good time to speak to an IFA, as they can guide you towards the ideal balance of risk and security, and also manage everything for you if you wish.

Learn more: SIPP vs ISA: which should you choose?

What happens to your SIPP on retirement?

A SIPP can help make your retirement move more flexible because it gives you plenty of options for taking money out of your pension.

You can start doing this from age 55 (rising to 57 in 2028), though it’s best to wait longer and let your pension grow for as long as possible.

All the usual ways of taking your pension apply to SIPPs.

Broadly, these are:

• A tax-free lump sum of 25%: you can have a quarter of your pension pot tax-free before deciding what to do with the rest of it.

• An annuity: you exchange your pension pot for a guaranteed income for life.

• Drawdown: your pension pot is invested in a fund from which you can draw a flexible income. This may give you a higher income than an annuity, but there is also a risk of lower income if the stock market performs poorly. Your pot can even run out altogether.

• You can also make flexible lump sum withdrawals from your SIPP, including taking your whole pot in one go.

Can you transfer existing pensions to a SIPP?

You can move most existing pensions into a SIPP, however, it’s more complicated to transfer final salary schemes. Not all schemes can be transferred, and for those that can, you’ll need to seek professional advice if your pension is worth over £30,000.

A SIPP can be a good way to consolidate your pensions from previous employments and so keep track of all your savings in one place.

How can a financial adviser help me find the right SIPP?

A well-invested pension pot is the key to a secure retirement.

That’s why it pays to seek out an IFA when considering a SIPP and how to choose the best SIPP provider for your needs.

They can help you create your made-to-measure pension.

Get expert SIPP advice

Finding the right SIPP provider is all about balancing costs, investment choices, and flexibility.

A SIPP gives you a lot of control over your pension investments, but it's important to look beyond just the fees.

Choose a provider that aligns with your financial goals and offers a range of options to suit your needs.

Unbiased will match you with a financial advisor for expert financial advice on selecting the best SIPP provider and optimising your retirement strategy.