Key facts: The SIPP fee stack: a platform charge (percentage — typically 0.15–0.45% — or flat), fund costs (index funds ~0.1–0.2%; active funds several times more), dealing fees per trade on shares/ETFs, and drawdown/admin charges at some providers. Rule of thumb: percentage pricing favours smaller pots; flat fees favour larger ones — the crossover typically sits around £80,000–£120,000.
The four layers of the stack
The platform charge is the SIPP wrapper itself — the headline number in comparisons, but only one layer. Fund charges (OCFs) stack on top and are set by what you hold, not where: a portfolio of low-cost index funds keeps this near 0.1–0.2%; active funds multiply it. Dealing fees matter for share/ETF investors who trade — flat per-deal costs punish small regular purchases at some providers and are free at others. Event fees — drawdown administration, transfers out — vary from zero to meaningful and belong in any comparison you make near retirement.
Percentage vs flat: the crossover maths
A 0.3% platform fee costs £90/year on a £30,000 pot — but £1,500/year on £500,000. A flat-fee platform charging ~£200/year is expensive for the first pot and a bargain for the second. The crossover lands around £80,000–£120,000 for typical pricing (capped percentage structures blur it). Practical consequence: the right platform at 30 is often the wrong one at 55, and re-shopping the wrapper as your pot grows is one of the highest-value hours in personal finance. Compounded over 25 years, a 0.5% total-cost difference on a growing pot routinely exceeds £50,000 of retirement money.
Cutting the stack without cutting quality
The moves, in order of impact: hold low-cost index funds as the core (the fund layer is usually the biggest and most controllable); match the pricing model to your pot size and switch when you outgrow it; batch trades or use providers with free regular investing; and check drawdown fees before you need them — a cheap accumulation platform with expensive decumulation is a common trap. Consolidating scattered pots into one well-priced SIPP compounds all of these — with the guarantee checks our consolidation guide insists on first.
When paying more is fine
Cost isn't the only axis: platform quality, drawdown flexibility, investment range and service reliability are real. The discipline is paying deliberately — a fee justified by a feature you use — rather than by inertia. For most long-term investors holding diversified funds, though, cost is the axis that compounds, and the cheapest suitable stack wins. Our best SIPP options guide maps providers by investor type.
Auditing your own stack
An adviser can total your true all-in cost — wrapper, funds, dealing, future drawdown — and model the switch that fits your pot today and at retirement. Find a pension adviser through Nesto — free, no obligation.
Frequently asked questions
What's a reasonable all-in SIPP cost?
Wrapper plus funds under ~0.5% is achievable for index-based portfolios at the right platform; every 0.25% saved compounds meaningfully over decades.
Flat fee or percentage — which is cheaper for me?
Percentage below roughly £80–120k of pot; flat above it. Re-check as your pot grows — the answer changes.
Do fund charges come on top of platform fees?
Yes — always. Comparisons that quote only the platform charge hide the larger, holdings-driven layer.
Are drawdown fees worth checking early?
Yes — some cheap accumulation platforms charge notably for drawdown events. Check decumulation pricing before your pot is captive.