Fidelity SIPP: Is It the Best Choice?

Fidelity's SIPP offers a wide range of investments and in-depth research tools, designed to support informed decision-making. Their strong customer service and educational resources are key features.
  • Last Updated: 22 Mar 2024
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Francis Hui
Examine Its Benefits & Limitations & Find Out If It Could Be the Right Choice for You. Explore All This in Our Comprehensive Guide Now!
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Key Takeaways
  • Fidelity SIPP offers retirement savers tax-efficient savings and flexible investment options to grow their pension pot.
  • Compared to the market, fees are competitive, offering a cost-effective way to manage your retirement savings.
  • Supporting a wide range of investment choices, it allows investors to diversify their portfolios across stocks, bonds, and funds.
  • Its popularity among experienced investors stems from robust platform features and comprehensive research tools that facilitate informed investment decisions.
  • Fidelity SIPP is considered a comprehensive pension solution due to its flexible access options in retirement, including drawdown and lump sum withdrawals.

When it comes to the Fidelity SIPP, the UK market takes notice. 

Fidelity’s SIPP offering stands as a noteworthy contender in the expansive pension landscape, and with so many options for UK investors to choose from, understanding where Fidelity’s SIPP fits in can be pivotal.

In This Article, You Will Discover:

    The team at Every Investor has consulted industry sources and the company’s own material to compile this guide on how this SIPP shapes up in the wider UK pensions landscape.

    Before anything is published, all our content undergoes strict quality and compliance checks so we can be sure of bringing you only the most useful and relevant information.

    Who Is Fidelity?

    Fidelity is a global financial services company that provides investment management, retirement planning, wealth management, and other financial services.

    Fidelity offers a SIPP (Self-Invested Personal Pension) platform, allowing individuals to manage their pension investments.

    What Is a SIPP?

    The Self-Invested Personal Pension (SIPP) available in the UK is designed to provide individuals with greater autonomy over their retirement finances.

    It allows for personalized management and selection of a wide variety of investment vehicles, including equities, fixed-income securities, and real estate, all within the framework of their pension plan.

    How Does the Fidelity SIPP Work?

    The Fidelity SIPP (Self-Invested Personal Pension) works by allowing retirement savers to choose from a wide range of investment options, including stocks, bonds, funds, and more, to build a diversified portfolio.

    What Are the Benefits of the Fidelity SIPP?

    The Benefits of the Fidelity SIPPs provider include the wide variety of investment options on offer.

    Other advantages are:

    • Minimum investments from as little as £25.
    • Support in the form of calculators, investment selection tools, and online guidance.
    • A reduced service fee once your investment exceeds £250,000.
    • A guarantee that transfer fees will be covered up to £500 if you would like to transfer your pension from a different provider and need to pay fees.
    • A cashback offer of between £200 and £2,000 if you apply to transfer from a different provider before 1 April 2024.1
    • Which? Recommended status.2

    What Are the Drawbacks to a Fidelity SIPP?

    The Drawbacks to a Fidelity SIPP include the fact that, as with most Self-Invested Personal Pensions, it can be complex and it requires investment knowledge if you want to make informed decisions.

    Other potential drawbacks are:

    • Telephonic customer assistance can take a long time, according to client reviews.3
    • Phone trades cost £30 each.
    • Online deals cost £7,50.
    • Management fees and charges can impact overall returns and differ between funds within your SIPP, which means it can be difficult and time-consuming to figure out what you will be paying.4
    • Investment performance is subject to market fluctuations, as with all investments, and your capital is not guaranteed.

    Who Is Eligible to Open a Fidelity SIPP?

    UK residents over 18 and below 75 are eligible to open a Fidelity SIPP.

    You can also open a Fidelity SIPP if you are a Crown servant performing duties abroad or the legal partner of a Crown servant.

    What Should You Consider Before Choosing a Fidelity SIPP?

    Before selecting a Fidelity SIPP, consider your risk tolerance, your investment goals, and whether you are comfortable managing your own investments.

    Fees & Charges

    Fees associated with a Fidelity SIPP include an annual service fee, transaction fees for buying/selling investments, and fund management fees.

    Investment Options

    Investment options range from equities and bonds to ETFs and mutual funds.

    Flexibility & Accessibility

    Account holders can manage their investments online and make changes as needed. 

    However, funds are locked until the minimum retirement age of 55 (57 in 2028).

    Tax Benefits & Implications

    Contributions to a Fidelity SIPP benefit from tax relief, while investments grow tax-free within the account (although withdrawals are subject to income tax).5

    Withdrawal & Retirement Options

    Upon reaching retirement age, account holders can choose to access their funds. 

    Options include purchasing an annuity, taking a lump sum, or utilising a drawdown.

    Customer Support & Service

    Fidelity provides customer support to assist with account management, investment decisions, and other inquiries.

    Existing customers who are registered online can log in and send a secure message.

    Fidelity is available on 0333 300 3350, or +44 1737 838 000 from outside the UK.

    What Are the Contribution Limits of a Fidelity SIPP?

    The contribution limits of the Fidelity SIPP are not set, but there is a restriction on the amount of money you can invest in your pension before you forfeit your tax benefits. 

    Referred to as the annual allowance (AA), the maximum tax-relief limit is £60,000.6

    What Are the Fees & Charges Associated With a Fidelity SIPP?

    The fees and charges associated with a Fidelity SIPP include the annual service fee of 0,35% (or the £7,50 monthly fee if you hold under £25,000 and do not have a regular savings plan).7

    Other charges include:

    • Online trades: £7,50 each
    • Phone trades: £30,00 each

    Be sure to factor in the Fidelity SIPP’s service fees, trading costs, and other charges when considering your pension investment.

    What Are the Withdrawal Options

    Withdrawal options include purchasing an annuity, taking a tax-free lump sum, or using income drawdown.

    Who Is a Fidelity SIPP Suited to?

    A Fidelity SIPP is best suited to individuals who have investment knowledge, are comfortable managing their pension investments, and seek more control over their retirement savings.

    Considering a Fidelity SIPP can provide greater investment control and flexibility compared to traditional pension plans. 

    It allows individuals to tailor their investments according to their risk tolerance, financial goals, and market outlook.

    How Does a Fidelity SIPP Compare With Other Options?

    The Fidelity SIPP compares favourably with other options, especially in terms of cost if your investments are worth between £25,000 and £250,000.8

    What Are Clients Saying About Fidelity?

    Client reviews highlight Fidelity’s user-friendly platform, investment options, and reliable customer support.

    How the company stacks up on review sites:

    • Trustpilot: 4.0/5 stars (based on 4,356 reviews).9
    • Boring Money: 3.5/5 stars (based on 449 reviews).10

    Opening a Fidelity SIPP

    Opening a Fidelity SIPP is a straightforward online process.

    To open a Fidelity SIPP, follow these steps:

    1. Register: Create an account on Fidelity’s platform.
    2. Choose SIPP: Select the Self-Invested Personal Pension option.
    3. Provide Information: Complete the required information and verification steps.

    You will typically need your National Insurance number, proof of identity, and proof of address in order to complete your application.

    Regulatory Details

    The Financial Conduct Authority (FCA) regulates and authorises the Fidelity SIPP, and the provider follows the guidelines set for pension schemes in the UK.

    Registration numbers:

    • FCA ref. number: 122169.11
    • Companies House reg. number: 01629709.12

    Common Questions

    Benefits of Fidelity SIPP for Retirement Savers

    Fidelity SIPP Fees Compared to the Market

    Investment Choices with Fidelity SIPP

    Popularity Among Experienced Investors

    Comprehensive Pension Solution

    Is the Fidelity SIPP Safe

    What’s the Minimum Contribution Required to Open a Fidelity SIPP

    Can I Transfer My Existing Pension into a Fidelity SIPP

    How Often Can I Access & Manage My Investments Within a Fidelity SIPP

    Are There Any Penalties for Early Withdrawal From a Fidelity SIPP

    Can I Seek Professional Advice While Investing in a Fidelity SIPP

    What Happens to My Fidelity SIPP if I Change Jobs

    Can I Manage My Fidelity SIPP Online

    How Long Does It Take to Open a Fidelity SIPP Account

    In Conclusion

    Is a Fidelity SIPP the perfect fit for your pension ambitions? 

    This is a question of compatibility—whether you can align your investment goals with what Fidelity offers. 

    No investment journey is complete without informed guidance, so tapping into the wisdom of a qualified financial adviser can be a game-changer. 

    After all, when it comes to securing your retirement, the choice of a Fidelity SIPP should not be left to chance; it should be a well-considered move.

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