Pension fees on a £300,000 pot — where the platform decision really matters.
What do pension fees cost on a £300,000 pension pot? See why flat-fee SIPPs typically beat percentage-based providers above £200,000.
£300,000 is the point at which the choice between percentage-based and flat-fee platforms becomes a genuinely large financial decision. At 0.5% — typical for many workplace SIPPs — you'll pay £1,500 a year. At a flat £180/year on a platform like Interactive Investor, you'd pay 0.06%. The difference is £1,320 a year, every year, indefinitely. Over 20 years that's around £48,000 of extra value compounded. That said, flat-fee platforms aren't always the right choice — some have higher dealing fees that can erode the saving if you trade frequently, and some don't offer the funds you want. Run the numbers below to see what your specific fee profile costs you, then check whether a platform switch would actually save you money net of trading costs.