Bestinvest SIPPS Review: Is It the Right Platform?

Users rate Bestinvest's SIPP services highly for its comprehensive investment options and user-friendly platform, often highlighting their informative resources and supportive customer service as key benefits. Their reputation is built on client satisfaction.
  • Last Updated: 22 Mar 2024
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Contributors:

Francis Hui
Explore the Comprehensive Review Covering Its Fees, Performance, and User Experience. Find Out If Bestinvest Is the Right Platform to Grow Your Pension Savings and Achieve Your Financial Goals.
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Key Takeaways
  • Bestinvest is a reputable provider of SIPPs in the UK.
  • The fees associated with Bestinvest SIPPs are competitive compared to other providers in the market.
  • They offer a wide range of investment options for your SIPP, giving you flexibility and choice.
  • You can transfer your existing pension for potential tax benefits and investment control
  • The benefits include tax advantages, investment flexibility, and potential higher returns compared to traditional pensions.

In our latest Bestinvest SIPP review, we delve into one of the UK’s most prominent Self-Invested Personal Pensions, offering a discerning look at its features, benefits, and overall suitability for savvy investors. 

As the landscape of retirement planning evolves, understanding the nuances of such a flexible and comprehensive pension scheme is crucial.

In This Article, You Will Discover:

    Every Investor’s review aims to provide clarity and insight into the Bestinvest SIPP, helping you navigate its offerings and make informed decisions for your financial future.

    All our content undergoes quality and compliance checks before publication to ensure our readers receive only the most useful and up-to-date information.

    Who Is Bestinvest?

    Bestinvest is a UK-based investment platform offering a wide range of services, from DIY investment options to financial advice and managed portfolios.

    It caters to both novice and experienced investors, providing tools and resources to make informed decisions.

    Unique for its comprehensive investment guidance, Bestinvest is renowned for its “Best Funds” list and detailed research reports, aiding investors in selecting the right options for their portfolios. This feature sets it apart in a crowded market.

    What Is a SIPP?

    A SIPP, or Self-Invested Personal Pension, is a customizable UK pension plan granting investors autonomy over their retirement investments.

    It diverges from standard pensions by permitting investments in a broad array of assets, such as shares, bonds, and property.

    This pension scheme is designed for individuals keen on managing their retirement savings directly, offering them the flexibility to tailor their investment strategy and leverage tax benefits.

    It appeals to those who are proactive about their financial future, allowing for a hands-on approach to growing their pension pot.

    Is Bestinvest a reputable company for SIPPs?

    Bestinvest is a reputable company for SIPPs, offering a wide range of investment options and excellent customer service.

    They have a strong track record of managing client investments effectively and have received positive reviews from satisfied customers.

    With their transparent fees and comprehensive investment tools, Bestinvest is a trusted choice for individuals looking to maximize their retirement savings through a SIPP.

    Overall, Bestinvest stands out as a reputable and reliable company for SIPPs, providing clients with the expertise and resources needed to make informed investment decisions.

    Their dedication to customer satisfaction and commitment to financial success make them a top choice for those seeking a reputable SIPP provider.

    Development of the Bestinvest SIPP

    The development of the Bestinvest SIPP reflects a trend in the UK towards more personalised and flexible retirement solutions, and what McKinsey & Company called ‘a shift in responsibility for generating and managing retirement savings from government and defined benefit pensions to individuals’ in a 2023 article.1 

    To cater to the evolving needs of modern investors, Bestinvest aimed to provide a platform where individuals could actively manage their retirement savings with a wider range of investment options compared to traditional pension schemes.2 

    Over time, the Bestinvest SIPP provider has adapted to changes in the financial landscape, incorporating advanced technology and user-friendly interfaces to enhance user experience. 

    Its evolution also includes expanding its investment portfolio to include a broader spectrum of assets, such as bonds and commodities, in its multi-asset funds in 20083 and offering ready-made portfolios, DIY plans, and access to financial advice.4 

    This development trajectory has positioned the Bestinvest SIPP as a recognisable player in the UK’s pension market, as reflected in the company’s inclusion in a number of ‘Best SIPP’ lists.5

    Features of the Bestinvest SIPP

    Features of the Bestinvest SIPP include a wide range of investment choices, tax efficiency, and a user-friendly online platform, potentially making it a compelling choice for UK investors managing their retirement savings. 

    Investment Options & Flexibility

    The scheme provides access to a wide array of investments including stocks, bonds, funds, and ETFs, coupled with the flexibility to switch between investments without incurring significant charges.6 

    The fact that investors can choose from an extensive selection of assets that includes shares, funds, bonds, and exchange-traded funds (ETFs) allows for portfolio diversification.

    Fees & Charges

    Bestinvest SIPP is known for its transparent fee structure, which includes charges based on the value of investments and specific transaction fees.7 

    Account fees come to a minimum of £10 a month and taper down from 0,20% on ready-made portfolios and US shares, and from 0,40% on third-party funds and UK shares.8

    Technology & User Interface

    The platform’s website has been upgraded to be easier and more pleasant to use and now offers tools for portfolio management and performance tracking.9 

    This includes the Bestinvest Investment Search tool, which aims to help clients narrow down and select their investments by allowing them to apply certain filters (like performance, charges, and product type).10

    Bestinvest also compiles an annual ‘Spot the Dog’ list that identifies underperforming funds.11

    The online interface caters to both tech-savvy users and those who prefer straightforward, simple navigation, and the app has received 4,5 out of 5 stars on the App Store (based on 39 ratings).12

    Tax Benefits & Considerations

    Like other pension products, this SIPP offers valuable tax benefits, such as tax relief on contributions and tax-free growth on investments. 

    Aligning with UK tax regulations, investors can also withdraw a 25% untaxed lump sum upon retirement. 

    However

    After the initial tax-free lump sum, all other withdrawals will be taxed as income at the investor’s marginal rate. 

    These features form part of Bestinvest’s attempt at catering to the needs of anyone planning for retirement, regardless of investment background.

    Benefits of the Bestinvest SIPP

    Benefits of the Bestinvest SIPP include features such as flexibility, relatively simple diversification potential, and free financial coaching. 

    Here are some advantages to consider:

    • Investors can choose a ready-made portfolio or the self-managed option.
    • Bestinvest’s ‘Best™ Funds List’ may be a useful tool for investors who would like some extra guidance when selecting funds.13
    • Similarly, the platform’s annual ‘Spot the Dog’ list aims to help investors identify underperforming funds.14
    • According to a Forbes review from 2023, Bestinvest offers the highest interest rate on cash deposits kept in a SIPP.15
    • Bestinvest will pay up to £500 towards an investor’s transfer fees if they move investments valued at at least £50,000 from another pension to their new Bestinvest SIPP within a three-month period.16
    • Bestinvest offers free financial coaching and paid-for advice packages, as well as investment tracking tools.17

    Important

    Before you decide to transfer your pension, you should consider whether you may lose any benefits or incur significant costs by doing so.

    Speak to a pensions expert to make sure.

    Drawbacks to the Bestinvest SIPP

    Drawbacks to the Bestinvest SIPP include the fact that the product’s 0,4% annual service fee (on DIY funds and UK shares) may be higher than that of its competitors.18

    Other drawbacks and risks to consider are:

    • Bestinvest charges a relatively high foreign exchange fee of 0,95% for dealing in US shares.19
    • Investors are limited to UK and US shares.
    • As is the case with all UK pensions, investors are not able to access their funds until they reach retirement age.
    • As with all investment products, no SIPP investment is guaranteed to deliver good returns, and you may even incur significant losses.

    Discuss these points with your financial advisor to determine how your requirements and expectations match up with the pros and cons of the Bestinvest SIPP.

    Who Is the Bestinvest SIPP Suited to?

    The Bestinvest SIPP is suited to beginner investors who would appreciate a larger degree of guidance when picking investments. 

    Bestinvest’s free coaching may be useful in this regard, as may their advice packages. 

    The ideal investor for the Bestinvest SIPP is someone seeking a blend of flexibility and simplified investment choice, and the option of taking a more hands-on approach to pension management at a later stage.

    User Experience & Customer Service

    User experience and customer service tend to be rated highly, with reviewers on Trustpilot reporting high satisfaction with the platform’s ease of use and the quality of customer support, which includes coaching and personalised advice.20

    Account Management & Accessibility

    Account management is streamlined through an online portal, offering easy access and control over investments. 

    The platform’s accessibility is a key feature, appealing to a range of users from active investors to those seeking a set-and-forget approach.

    Client Testimonials & Reviews

    Many client testimonials on Trustpilot highlight the platform’s ease of use and helpful customer service, and the usefulness of the free coaching.21

    On the Smart Money People review platform, however, clients are less positive and have aired complaints about Bestinvest’s introduction of a £120 annual charge22 and about the firm’s customer service levels.23

    Online ratings:

    • Trustpilot: a very good 4,3 out of 5 stars (based on 961 reviews).24
    • Smart Money People: a less impressive 1,5 out of 5 stars (though this score is based on only 6 reviews, the last of which was submitted in 2022).25

    Remember that while online client reviews can sometimes provide a helpful glimpse into current or former clients’ feelings about a company’s product offerings and customer service levels, these aggregated review scores do not necessarily provide an accurate assessment of a provider’s performance. 

    Regulatory Compliance & Security

    Regulatory compliance and security are paramount considerations for any investment provider, and Bestinvest’s SIPP is no exception in this regard, as it is regulated by the Financial Conduct Authority (FCA). 

    As part of this regulation, strict rules must be followed when handling client funds, and Bestinvest must allow regular audits and submit detailed reports to regulatory bodies. 

    Regulatory Details

    Bestinvest is regulated by the FCA and registered with Companies House.

    The relevant details:

    • FCA ref. number: 165169 (registered as Evelyn Partners Investment Management Services Limited and trading as Bestinvest).26
    • Companies House number: 02830297.27

    Data Security & Protection Measures

    The platform employs advanced data security protocols, including encryption and secure servers, safeguarding client information and transactions against potential breaches.

    How to Open a Bestinvest SIPP Account

    To open a Bestinvest SIPP account, you will need to follow a relatively simple online process. 

    The steps include:

    1. Create your online profile on the Bestinvest site.28
    2. Select the SIPP account option.
    3. Enter your bank details.
    4. Fund your account.

    You will have to have your National Insurance details to hand when opening your SIPP account.

    Common Questions

    Is Bestinvest a reputable provider of SIPPs

    What are the fees associated with Bestinvest SIPPs

    How does Bestinvest's investment options compare to other providers

    Can I transfer my existing pension into a Bestinvest SIPP

    What are the benefits of opening a SIPP with Bestinvest

    What Is the Bestinvest SIPP & How Does It Work

    What Investment Options Are Available in a Bestinvest SIPP

    How Do Bestinvest SIPP Fees & Charges Compare with Other SIPPs

    What Are the Tax Benefits of Investing in a Bestinvest SIPP

    How User-Friendly Is the Bestinvest SIPP Platform

    How Does Bestinvest Ensure the Security & Safety of My Investments

    Who Is the Ideal Investor for a Bestinvest SIPP

    How Do I Open & Manage a Bestinvest SIPP Account

    Can a Bestinvest SIPP Be Integrated into My Overall Retirement Plan

    How Can I Withdraw Funds from My Bestinvest SIPP

    In Conclusion

    With its range of investment choices, user-friendly platform, and collection of information and tools, the Bestinvest SIPP stands out as a strong contender in the UK’s Self-Invested Personal Pension market. 

    Whether you are a seasoned investor or just beginning your pension journey, this scheme could offer you a balanced blend of flexibility and security. 

    Our Bestinvest SIPP review underscores this product’s potential as a key component in crafting a resilient and tailored retirement strategy.

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