Whereas SIPPs offer a transparent
and low rate of account administration charges the same cannot be said for traditional
pension schemes.
A small sounding 3% annual management charge can
erode the value of your final pension pot, for example, from ã300,000 to just
ã150,000. Shocking isnââ¬â¢t it? Hidden charges and incentives for pension
management teams to switch your pension monies in and out of various funds will
allow them to earn money whilst you do not.
The cumulative effect of ââ¬Ëtrail commission feesââ¬â¢ payable to
the advisor who sold you the scheme over many, many years will also impact the
amount of your money that is invested to earn you money. The purpose of
trail fees being to compensate your advisor for future advise and pension
reviews given to you ââ¬â if you feel this is good value then great, but many
people donââ¬â¢t ââ¬â not seeing their ââ¬Ëadvisorââ¬â¢ from one year to the next. Such is the impact that trail commission fees
make upon the final size of your pension that a (traditional pension ââ¬Ëinsiderââ¬â¢)
company has just broken ranks promising to find and rebate 80% of trail fees
deducted from your pension. To say he is not popular with the traditional
pension industry for doing so is an understatement.
The SIPP Zone brings together a unique gathering of pension
ââ¬Ëwhistleblowersââ¬â¢ with free seminars and 1-2-1 advice at Excel London 13th-
15th October.
For those that canââ¬â¢t make it to the event there is a handy
free guide to download from www.sippzone.info
