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Finance
Mortgages, pensions, loans, shares, savings |
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Sipps set-up costs becoming 'increasingly competitive'
Sipps set-up costs becoming 'increasingly competitive'
Set-up costs of self-invested personal pensions (Sipps) have dropped in the last year as providers clamour for a piece of the market.
This is according to research company Defaqto, which found that setting up a Sipp has become up to 13 per cent cheaper over the last 12 months.
It said consumers are benefiting from reduced prices that the firm believes are set to continue to spiral downwards.
Commenting on Sipps in the UK 2007 – Let battle commence, report author Matt Ward said: "Sipp providers have historically not been under much pressure to reduce charges in what was perceived to be a premium service industry."
However, Mr Ward, the group head of pensions and wealth management at Defaqto, added that this outlook has changed.
"Now that the tide has turned, every penny counts and value for money, from low-cost to premium Sipps, needs to be proven," he said.
Earlier this week, one UK provider of Sipps announced the repricing of its Sipp Investment Centre.
James Hay said it would now include a price promise on all its top 20 Lipper funds, as well as offering a new free service that will allow next-day switching between funds in its Investment Centre.
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