Transparency on Charges
The charging structure of the Prosperity Self-Invested Personal Pension (SIPP) is transparent. There are no hidden charges.
The Establishment fee of £175 + VAT covers your initial application, transferring in of existing pensions and investing your pension fund. While you are building your pension fund, you will be in the Uncrystallised product (i.e. no benefits have commenced). This allows you to grow your pension savings through investments of your choice. The Annual Administration Fee is charged in advance and covers the day-to-day administration of your SIPP − including collecting pension contributions, claiming tax relief, providing an annual valuation, and completing all HMRC and FCA reporting to maintain the tax efficiency of your pension.
When you decide to take your pension benefits, you will move to the Crystallised product. A setup fee is charged to cover the administration costs of calculating and paying your initial benefits. Once your pension is crystallised it can remain invested, but the flexibility of the product allows you to access it in accordance with your needs.
Crystallised Policy administration fee includes all drawdown options of Uncrystallised Funds Pension Lump Sum (UFPLS) – capped drawdown, flexi-access, small pots and triviality payments. The administration fee covers paying regular pension payments, calculating income tax, benefit reviews and ensuring your your pension remains HMRC and FCA compliant.