SIPP Fees Compared: What a Self-Invested Pension Costs

SIPP fees are the quiet drag on your retirement that almost nobody checks until it is too late to matter. A self-invested personal pension is one of the most powerful tax wrappers available to a UK investor, but the charges you pay for it come in several layers, and the wrong platform for your pot size can cost you tens of thousands of pounds by the time you retire. The good news is that once you understand the handful of fee types and which structure suits your situation, choosing well is straightforward. This guide breaks down every SIPP fee, explains the percentage-versus-flat decision that matters most, and shows why a difference that looks trivial today is anything but over 25 years.

Because platform prices change often (Hargreaves Lansdown, for example, cut its ISA and SIPP charges in January 2026), we focus on the fee structures rather than quoting figures that will date. Always check each provider’s current rate card before you commit. For the wider decision of where your money should go first, see SIPP vs workplace pension vs ISA.

The layers of SIPP fees

A SIPP does not have one charge, it has a stack of them. When you compare providers, add these up together, not one at a time:

• The platform (or administration) fee. What the provider charges to hold and administer your pension. This is the big one, and it is where the percentage-versus-flat decision lives.
• Dealing charges. A per-transaction cost to buy or sell. Some platforms charge nothing for fund trades, a small fee for regular investing, and a higher fee for one-off share and ETF trades.
• Fund charges (the OCF). The ongoing charges figure of whatever funds you hold, paid to the fund manager, not the platform. A cheap platform holding an expensive fund is not a cheap SIPP. See our guide to the OCF and how fund fees erode returns.
• Occasional and exit fees. Charges for drawdown, transfers out, or holding certain assets. Many platforms have dropped exit fees, but always check.

The headline platform fee is only part of the picture. A true comparison combines the platform fee, your likely dealing costs, and the OCF of the funds you actually intend to hold.

Percentage fees vs flat fees: the decision that matters most

This is the single choice that determines whether you are overpaying. SIPP platform fees come in two broad shapes:

• Percentage fees charge a small annual percentage of your pot. When your balance is small, a percentage fee is cheap in cash terms. Many percentage-based platforms also cap the charge on shares and ETFs (though often not on funds), which softens the cost as you grow.
• Flat fees charge a fixed monthly amount regardless of pot size. When your balance is small, a flat fee feels expensive relative to the pot. As the pot grows, that fixed cost becomes a tiny fraction of your money.

There is a crossover point. Below it, a percentage platform is usually cheaper; above it, a flat-fee platform wins, often by a wide margin, because a percentage of a large pot keeps growing while a flat fee does not. As a rough rule, smaller and newer pots suit percentage platforms, and larger pots, especially those into six figures, are frequently better off on a flat-fee provider or one that caps its charges hard.

The practical takeaway: recheck this as your pot grows. A platform that was the cheapest choice when you started can quietly become the most expensive once you have built a substantial balance, at which point a transfer to a cheaper SIPP can save you real money.

The main types of SIPP provider

Without quoting figures that will date, the market sorts into a few recognisable models:

• Percentage platforms with caps (such as Hargreaves Lansdown and AJ Bell) charge a percentage that tapers or caps as your holdings grow, and suit investors who value a broad fund range and service.
• Own-fund percentage platforms (such as Vanguard) charge a low capped percentage but restrict you to the provider’s own funds, which is fine if those funds are all you want.
• Flat-fee platforms (such as interactive investor) charge a fixed monthly subscription, which becomes excellent value for larger pots.
• Zero-platform-fee ETF platforms (such as InvestEngine) charge nothing to hold ETFs, ideal for a buy-and-hold ETF investor, though the investment universe is ETFs only.

Match the model to your pot size and to what you actually want to hold. A shares-and-funds investor with a large pot has very different needs from a beginner drip-feeding into a single global ETF.

Why small fee differences matter so much

Fees feel abstract because they are small percentages, but they compound against you exactly as your returns compound for you. On a six-figure pot held for a couple of decades, a fee gap of a few tenths of a percent can quietly consume tens of thousands of pounds of compounded retirement money, money that would otherwise have stayed invested and grown. That is why fee-checking is not penny-pinching; it is one of the highest-return hours you can spend on your pension. Our piece on compound interest shows the mechanism at work.

The regulator’s guidance on pensions and charges is worth reading too: MoneyHelper’s SIPP guidance is a free, impartial starting point.

How to choose a low-cost SIPP

1. Estimate your pot size now and in ten years. This tells you which side of the percentage-versus-flat crossover you sit on.
2. List what you actually want to hold, funds, shares, ETFs, or a single tracker, and check the provider supports it cheaply.
3. Add up the full stack: platform fee plus realistic dealing costs plus the OCF of your chosen funds.
4. Check for exit or drawdown fees, especially if you may transfer or start taking an income later.
5. Reassess every few years. The best SIPP for a small pot is often not the best SIPP for a large one.

See our roundup of the best SIPP providers in the UK for how these models line up in practice.

Frequently asked questions

What are typical SIPP fees made up of? A SIPP charge is a stack, not a single fee: the platform or administration fee, dealing charges to buy and sell, the ongoing charges figure (OCF) of the funds you hold, and occasional costs like drawdown or transfer-out fees. To compare fairly, add these together for the way you actually intend to invest, rather than judging on the headline platform fee alone.

Is a flat-fee or percentage-fee SIPP cheaper? It depends on your pot size. Percentage fees are cheaper in cash terms while your balance is small, but a flat monthly fee becomes far better value as your pot grows, because a percentage of a large pot keeps rising whereas a fixed fee does not. There is a crossover point, so larger pots usually favour flat-fee or hard-capped platforms.

Do SIPP fees really make much difference? Yes, more than most people expect. Because charges compound against you over decades, a gap of just a few tenths of a percent on a six-figure pot can cost tens of thousands of pounds by retirement. Choosing the right fee structure for your pot size is one of the most valuable decisions you can make.

Can I switch SIPP provider if fees rise or my pot grows? Yes. You can transfer a SIPP to a cheaper provider, and it often pays to do so once your pot outgrows a percentage-fee platform. Check for any exit fees before moving, and be aware the transfer can take some weeks. Our guide on transferring and combining pensions walks through the process.

Are there SIPPs with no platform fee? Some platforms charge no fee to hold ETFs, which can make a buy-and-hold ETF SIPP effectively free at the platform level. The trade-off is a narrower investment universe, typically ETFs only. You still pay the fund’s own OCF, so a zero-platform-fee SIPP is not entirely free, just very cheap for the right kind of investor.