BestInvest SIPP Review: Is It Worth Your Investment?

Typical charges for a BestInvest SIPP include annual management fees, trading costs, and potentially advice fees, offering a transparent cost structure that enables efficient budgeting for your retirement investments.
  • Last Updated: 22 Mar 2024
  • Fact Checked
  • Our team recently fact checked this article for accuracy. However, things do change, so please do your own research.

Contributors:

Francis Hui
Navigate the Ins & Outs of Bestinvest SIPP to Optimise Your Retirement Savings. Learn About Investment Choices, Tax Perks & How to Begin. Act Now for a Secure Financial Future!
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Key Takeaways
  • BestInvest SIPP charges are competitive and designed to cater to various investment sizes and strategies, ensuring a tailored approach for retirement savings.
  • When comparing, BestInvest’s fees often result in lower overall costs than those of many competitors, thanks to a transparent structure.
  • All costs are outlined upfront, eliminating hidden fees to maintain clear financial planning.
  • Investors can lower expenses by selecting lower-cost funds or negotiating based on investment volume.
  • Included services encompass investment advice, a diverse fund selection, and online management tools for effective retirement planning.

Investigating the BestInvest SIPP charges may be a useful move when planning your retirement savings strategy, especially given the removal of the Lifetime Allowance and its associated tax implications on pensions in April 2024.1 

This Self-Invested Personal Pension (SIPP) offers various investment choices, the ability to build a customisable portfolio, access to free coaching, and a transparent fee structure.

In This Article, You Will Discover:

    Every Investor has meticulously researched this product and fact-checked our findings to offer you current, reliable information on the BestInvest SIPP, including its features, costs, and benefits.

    Read on to find out more.

    What Is a SIPP?

    A SIPP, or Self-Invested Personal Pension, is a type of personal pension plan in the United Kingdom.

    It grants individuals greater control over their retirement savings by allowing them to choose and manage a diverse range of investments, such as stocks, bonds, and property, within their pension fund.

    SIPPs provide a self-directed approach to retirement planning.

    Who Is Bestinvest?

    Bestinvest is a UK-based financial services company that offers investment management and advisory services.

    It provides a platform for individuals to manage their investments, including SIPPs.

    Bestinvest is known for providing research, tools, and advice to help investors make informed decisions about their portfolios.

    It’s essential to check for the most recent information about Bestinvest, as details may evolve over time.

    What Is A BestInvest SIPP?

    A BestInvest SIPP is a tax-efficient pension wrapper that offers a flexible investment strategy designed to provide income in retirement.

    What Are The Charges Associated With A BestInvest SIPP?

    BestInvest offers a Self-Invested Personal Pension (SIPP) with transparent and competitive charges.

    The charges associated with BestInvest SIPP as a provider include an annual administration fee, fund management charges, and transaction costs.

    The annual administration fee covers the ongoing management and administration of your SIPP, while the fund management charges are levied by the investment funds you choose within your SIPP.

    Transaction costs may apply when buying or selling investments within your SIPP.

    It’s important to note that these charges may vary depending on the specific investment options and services you choose, so it’s always advisable to review the detailed fee schedule and terms provided by BestInvest.

    In offering a wide range of investment options within BestInvest SIPP, including funds, shares, and investment trusts.

    Our charges aim to be competitive and transparent, allowing you to make informed decisions about your retirement savings.

    In addition to the annual administration fee, fund management charges, and transaction costs, there may also be charges for additional services such as accessing specialist advice or transferring funds from other pensions.

    In providing clear information on charges, enables you to understand the costs associated with your BestInvest SIPP, and helping you plan for a secure and prosperous retirement.

    How Does A BestInvest SIPP Work?

    A BestInvest SIPP works like a pension wrapper, allowing you to choose from a range of investment options to build your retirement savings. 

    You can also transfer existing pensions into it, and the charges vary based on the amount you’ve invested.

    What Are The Benefits Of A BestInvest SIPP?

    The benefits of a BestInvest SIPP include its investment flexibility, tax advantages, and convenient pension consolidation.

    A closer look at these advantages:

    • Investment flexibility: You get to choose from a wide array of investment options, tailored to your risk tolerance and financial goals.
    • Tax benefits: There are several, including tax relief on your contribution, tax-free growth on your investments, and the option to take up to 25% of your pension pot as a tax-free lump sum once you reach age 55.
    • Pension consolidation: You can combine multiple pension pots into a single account, simplifying management and oversight.

    What Are The Drawbacks To A BestInvest SIPP?

    The drawbacks to a BestInvest SIPP are typically the complexity of managing your own investments, the risk associated with market fluctuations, and the fees that may apply depending on your investment choices.

    Digging a little deeper into the drawbacks:

    • Complexity: Managing your own investments can be intense and time consuming.
    • Market risk: Your pension’s value can go up or down based on market conditions.
    • Fees: Charges can eat into your overall returns if they are not managed properly.

    The charges associated with a BestInvest SIPP feature tiered service fees, dealing charges for investments, and various other fees depending on the services used.

    Account Setup & Annual Administration Fees

    Account setup’s free and annual administration fees are tiered, starting from 0,2% for ready-made portfolios and US shares and 0,4% for other investments for pensions up to £250,000, with no charge for the portion over £1 million.2

    Dealing Charges For Investments

    Dealing charges for investments in a BestInvest SIPP vary by type. 

    Online fund dealing is free, while UK online share dealing costs £4,95 per trade. 

    There are no charges for US online share dealing.3

    Annual Fund Management Fees

    Annual fund management fees are charged by the fund manager and vary depending on the type of fund, but are typically around 0,9% for equity funds, 0,3% for tracker funds, and 0,6% for bond funds. 

    BestInvest rebates any commission it receives, which can range between zero and 1% a year, back to you.4

    Transfer Fees

    There are no transfer fees when transferring from other providers, and BestInvest offers to contribute £500 towards any exit fees charged by your current pension provider on pensions with a total value of £50,000 or more.5  

    Coaching & Advice Fees

    BestInvest offers free sessions with a coach who will give you tips (but not financial advice) on how to manage your investments.6

    BestInvest Offers Two Other Advice Services:

    • Investing in Your Goals: For newbie investors, a £295 session with a coach covers your investment goals, risk tolerance, and timeline, and includes a post-session report.7
    • Portfolio Health Check: For £495, an investment advisor reviews your current portfolio against your goals and risk tolerance, concluding with a report.8

    How Do BestInvest SIPP Charges Compare With Other Providers’ Charges?

    BestInvest’s SIPP charges are competitive with other providers’ charges, particularly when it comes to larger pensions, but specific comparisons depend on the services and fee structures you select.

    What do the others charge?

    Similar SIPP providers like AJ Bell, Hargreaves Lansdown, and Fidelity charge platform fees ranging from 0% to 0,45%, as well as varying online buying/selling fees. 

    Interactive Investor deviates from this model by charging a flat monthly platform fee of £12,99. 

    Common Questions

    How Are BestInvest SIPP Charges Calculated?

    Are There Any Hidden Fees Associated With BestInvest SIPPs?

    Can I Transfer My Existing Pension Into a BestInvest SIPP?

    What Happens If I Do Not Manage SIPP Charges Effectively?

    Is There a Penalty for Withdrawing Funds From a BestInvest SIPP?

    Are There Any Specific Investment Options That Have Lower Fees Within BestInvest SIPPs?

    How Often Are BestInvest SIPP Charges Deducted From My Account?

    Can I Negotiate the SIPP Charges With BestInvest?

    What Are the Current BestInvest SIPP Charges?

    How Do BestInvest SIPP Charges Compare to Other Providers?

    Are There Any Hidden Fees in BestInvest SIPP Charges?

    Can I Reduce My BestInvest SIPP Charges?

    What Services Are Included in BestInvest SIPP Charges?

    In Conclusion

    While evaluating the suitability of the BestInvest SIPP for retirement planning, it is crucial to consider the fees involved carefully. 

    Assessing these charges in relation to the services and options offered can help determine if this product could be the right choice for your financial goals. 

    Ultimately, understanding the full scope of BestInvest SIPP charges is key to making an informed decision.

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