Standard Life raises Sipp charges by 4%
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Standard Life is increasing its self-invested personal pension charges for all existing customers by 4 per cent and introducing a £750 charge for new Sipp customers who transfer out within 12 months.
The rise takes effect from January 1, 2011 and Standard will introduce a drawdown annual review charge of £100. which relates to a new review service that will be available at the end of March 2011.
The charge will not apply if the review is requested and completed online.
Standard Life will bring in a £640 charge for clients who want to use their own solicitor for commercial property purchases or sales. It says an additional hourly rate may also apply.
For new Sipp clients, there will be a £750 charge for transfers out of the active money Sipp to another provider within the first 12 months. The charge will not apply on life events such as divorce, terminal illness and death.
The company will be introducing a £175 drawdown set-up charge for customers who are invested in full Sipp options which will apply on the first benefit crystallisation event.
Head of Sipp Alistair Hardie says: “This is only the third time that we have inc-reased charges since our Sipp launched in 2004. To give this some context, our one-off set-up charge for full Sipp options has increased by £13 and our yearly administration charge by £17, an extra £1.40 each month.”
Annuity Direct chief executive Bob Bullivant says: “Charges will change and it is up to advisers to compare Standard Life’s product with others in the market to see if there is anything more competitive available.”
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