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&#39Corporate Sipps can beat group stake and PPs on cost&#39

Corporate Sipps could work out cheaper than group stakeholders and group personal pensions, according to research for PY Sipp Solutions.

Independent research from independent actuary Philip Moore of MW Trustees shows that a scheme with 100 members running over 25 years with a vanilla fund management charge of 0.2 per cent could cost £1.75m compared with £3.15m in a 1 per cent stakeholder fund.

PY Sipp Solutions says corporate Sipps offer investment profiles for different levels of staff and access to commercial property investment.

The firm says the fact that the product is written in trust means it is a safer haven for members&#39 money than final-salary schemes or insurance company-based products.

Chairman Geoffrey Pointon says: “Corporate Sipps will provide people with almost unlimited choice of investment and far greater security than buying traditional personal pensions from insurance companies. We can dispel the myth that Sipps for the ordinary person are too expensive. If they are bought through an employer, Sipps are at least as competitive as any other pension scheme.”

Informed Choice managing director Nick Bamford says: “I like PY Sipp Solutions&#39 individual Sipp structure but If I go into a group stakeholder, I know I am getting both the wrapper and the investment management for under 1 per cent. With a group Sipp, there is the question of the cost of deciding what to do with the money inside it but I would be happy for them to prove me wrong.”

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