Choosing a personal pension

It’s important to compare different personal pensions providers to ensure you get the best plan to grow your retirement wealth. To help you get started, we’ve rounded up the best SIPP and personal pension providers. We conducted a comprehensive review of fees, fund performance, choice of assets and ease of use to rank the top personal pensions and SIPPs on the market.

Personal pension providers charge fees to cover the cost of managing your account and executing your investment choices. Although providers have unique charging structures, some of the fees you can expect to pay include:

Account charges
Account charges cover the cost of running your pension account. It’s usually charged as a percentage of your overall pension pot. However, some providers may charge a monthly flat fee instead.

Transaction fees
Transaction fees cover the cost of buying and selling investments in your pension account.

Foreign exchange fees
Foreign exchange fees, or FX fees cover the cost of buying or selling investments in a non-pound sterling.

Ongoing charges
Some investment assets, such as funds, ETFs and investment trusts, come with ongoing charges to cover the cost of managing them.

Exit charges
You may have to pay a fee to leave a pension provider.

Withdrawal fees
When you’re eligible to take money out of your pension, you may have to pay a fee each time you make a withdrawal.

The table below shows how much a one-time stock trade could cost you at some of the UK’s most popular SIPP and Personal Pension providers.

Both personal pensions and SIPPs give access to a variety of investment options for your pension. These include investing in stocks, shares, bonds, funds, exchange-traded funds (ETFs) and more.

Generally speaking, SIPPs offer a more diverse range of investment options, while standard personal pensions offer a limited selection of funds managed by the pension provider.

Standard personal pensions offer a simple way to save for retirement, which is managed by a pension provider. You’ll have less control over the way your pension fund is invested, meaning you won’t need a lot of experience to get started. SIPPs, on the other hand, are much more hands-on.

SIPP investors are responsible for selecting investments and monitoring their performance. Although this gives you a lot more autonomy, it requires additional research to ensure you choose the best options to grow your pension fund responsibly.

Personal pensions and SIPPs providers are regulated by the Financial Conduct Authority. This means that if your pension provider goes bust, you’ll get compensation back through the Financial Services Compensation Scheme (FSCS). Under the FSCS, you can claim:

• 100% of your pension money
• Up to £85,000 if you have a SIPP

You can use the FSCS’s tool to check what type of protection your pension has. It’s essential to check that a pension fund is regulated to ensure your savings are protected should the provider go out of business.

Speaking with an independent financial adviser could help you choose the best type of pension to grow your retirement fund. A pension adviser looks at your personal circumstances, long-term goals and helps you find the best way to achieve your retirement income aspirations.

It’s important to note that financial advisers charge a fee for their services. This could be a one-off payment or an ongoing fee if they continue to manage your pension after you choose one.