The cost of setting up a self invested pension plan can vary largely depending on the company you choose to assist you. The set up cost as well as the administration cost can also vary depending on the type of investments you have opted for.

According to the law you are required to appoint a company to administrate your fund. Appointing a trustee is also mandatory. Many companies provide both the services to ensure a smoother process for you. If you invest in a self invested pension plan you will have to be ready to pay some initial and ongoing charges. Let’s have a look at these charges in detail.

Set-Up Fee: The set up fee of a SIPP can vary large. You may have to pay as much as £500 to set up a fund.

Transfer Cost: If you want to move your money to SIPP from a share investment or other plan you will have to pay a transfer cost.

Management Cost: You need to pay a management fee every 12 months to the company for managing your SIPPS.

Investment Fees: Each time you invest in the fund you may need to pay an investment fee.