TD Waterhouse, an online financial services company, has reduced the annual administration fee on its self invested personal pensions with immediate effect, giving investors the potential to save up to GBP300 per year in fees.
The new fee will be charged bi-annually each June and December at 0.25% of the value of the TD Waterhouse self invested personal pensions (SIPP), subject to a minimum of GBP40 and maximum of GBP100 during each charging period. This equates to a total annual fee of 0.5% of the fund.
TD Waterhouse is currently waiving the initial set up fee of GBP80 on new SIPPs until further notice, and because TD Waterhouse use Capita as the SIPP trustee, all fees are exempt from VAT, ensuring more of the investor’s money goes towards funding his or her retirement than paying for the fund itself.
Angus Rigby, CEO of TD Waterhouse UK, said: SIPPs provide all the tax advantages of a traditional pension scheme and puts the investor in control of where, how and when their savings for retirement are invested. Although funds cannot be drawdown until the investor is 55, the freedom of choice and reduced administration costs available certainly makes SIPPs a worthwhile investment choice to both novices and seasoned investors alike1.