What are the best SIPP & SSAS providers 2024?

Every year, Moneyfacts takes an expert look at all the products currently available for self-invested pension plans (SIPP) and small self-administered schemes (SSAS). Our product specialists examine each one carefully to determine its best elements and how they compare to others in the marketplace, as well as the level of benefit they bring to customers. Products are then awarded a star rating, with the best receiving the top awards of four and five stars.

We take several features into account when considering a star rating, with separate criteria for SIPP and SSAS.

SIPP features:

SSAS features:

SIPP and SSAS Star Ratings 2024

Click the headings below to see the full list of star ratings awarded.

A guide to SIPP & SSAS pensions

A SIPP is a type of personal pension that allows you more freedom and control over how your pension pot is invested. As opposed to a standard stakeholder or personal pension, a SIPP offers a greater number of funds, as well as the opportunity to invest directly in a number of different assets, including:

• UK stocks & shares
• Foreign stocks & shares – call your SIPP provider to check whether they cover foreign and US markets, as they may offer it as a broker assisted service
• Unlisted shares
• Investment trusts
• Unit trusts
• Open Ended Investment Companies (OEICs)
• Exchange Traded Funds (ETFs)
• Commercial property
• Gilts and bonds
• Certain National Savings & Investments products
• Cash

The types of asset you can hold in your SIPP are determined by what your SIPP provider allows, so you may not be able to invest in all of those named above. 

A SIPP is a form of pension wrapper and allows those qualifying investments in the SIPP to benefit from income tax relief. The SIPP holds these investments and funds in Trust and the SIPP provider acts as the Trustee for the holder of the SIPP.

Full SIPPs

There are broadly two types of SIPPs:, full SIPPs and low-cost SIPPs. Full SIPPs are usually available through a specialist SIPPs firm and offer a wider choice of investments. The SIPPs firm will provide you with information and help you to administrate your investment transactions, but they do not offer you advice and you remain responsible for your investment decisions. They usually charge higher fees than compared to low-cost SIPPs.

Low-cost SIPPs

A low-cost SIPP can be accessed through an investment platform. They usually come with lower fees than a full SIPP, but offer less investment options. When you choose a low-cost SIPP, you take responsibility for your investment choices – your SIPPs provider or platform will not automatically give you advice.

As a SIPP is a type of personal pension, the rules on how you can contribute and take your pension are no different.

The tax relief you get on contributions made is the same – up to 100% of your annual salary, up to a maximum of £60,000 per tax year and will benefit from Government tax relief (If you're a non-taxpayer, you can invest up to £2,880 into a SIPP and benefit from tax relief at 20%).So every £100 a basic rate or non-taxpayer invests into a SIPP, as with a normal personal pension, will actually mean £125 in their pension pot!

Although a SIPP gives you more flexibility with regards to investment choice, you can't access your funds any earlier than a normal personal pension, which, under current rules, is on or after your 55th birthday. However, this minimum age will be increasing to 57 by 2028.

When you come to take your pension, the rules for a SIPP are the same as for a standard personal or stakeholder pension: up to 25% can be withdrawn as a tax-free lump sum, with the remainder to be used to provide an income in retirement. However, the new pension freedoms, which came into operation in April 2015, mean pensioners currently have the option to access their entire pension pot in a lump sum at any time after they reach the age of 55, and anything above the tax-free element will be taxed as earned income at the pensioner's marginal rate.

All pensions, including SIPPs, have maximum limits for how much you can save into them each tax year and receive tax relief. There is also a cap for the total amount you can hold in your pension pot. During the current tax year, you can invest up to £60,000 of your earnings before tax into a pension and not pay tax on this income.

If you earn more than £260,000, the amount you can invest in a pension and not pay income tax reduces by £1 for every £2 earned over £260,000. All tax payers receive a minimum allowance of £10,000 for tax-free pension contributions.

It may be the case that you're disillusioned with your current pension, or that you'd prefer to take the reins and have more control of your pension pot. However, a SIPP is not risk-free and to someone not used to dealing in shares or other investments, it has the potential to prove a costly mistake.

A SIPP is only for you if you are a seasoned investor and you really understand what you're letting yourself in for. You've also got to be comfortable with the risks you are taking.

Having said that, if you are happy to invest for yourself, a SIPP can be a good way to bring different pensions you already have into one place in a way that can allow them to really grow.

The features and investment choice that a SIPP offers should be your primary consideration when deciding which SIPP is best for you. Although a Low Cost SIPP may offer a less expensive way of investing, remember that investment choice may be limited. On the flipside, there's no point paying for a load of features and investment choices that you're not going to use.

Keeping track of your SIPP is vital; therefore a provider with a good online management system is a must so you can regularly monitor the performance of your pension pot.

You should also take into consideration any preferential features of your existing pension, as well as any exit fees if you are considering transferring to a SIPP.

You can leave the remaining value of your SIPP to the beneficiaries of your will. You will need to let your SIPPs provider know about your wishes. Your beneficiaries are entitled to inherit the funds from your SIPP up to the maximum lifetime value, but what they can access will depend on whether you have taken benefits from the SIPP, the type of payments they want to take from the SIPP or your age at death. In each scenario, your beneficiaries may also find they will need to pay tax on the funds in your SIPP.

Until relatively recently, SIPPs have been the preserve of those with larger pension pots. The main reason for this was that the fees and charges involved were not economical unless your pension pot was of a certain size, effectively pricing a lot of people out of the SIPP market.

However, even with a Low Cost SIPP, there are still charges you should be aware of and compare:

Set-up fees

Just setting up a SIPP can incur a cost. Set-up fees vary considerably – there may be no set-up fee (other charges may be higher though) or it could cost several hundred pounds.

Annual management charge(s)

You may be charged an annual fee by your broker to administer your SIPP. If you're invested in an open ended investment company (OEIC) or unit trust, there may be an annual fund management fee charged here also.

Dealing charges

If you're buying or selling shares through your SIPP there may be charges for share dealing. Remember that with shares there will also be stamp duty to pay; however, because a SIPP is a tax-efficient wrapper, you don't pay any capital gains tax on anything you make on them.

Yes, you can have a workplace pension and a SIPP at the same time. You do not need to transfer your workplace pension into the SIPP. Some of the areas you should consider before moving your workplace place pension to SIPP are listed below. Any decision regarding the transfer of a pension is best supported with financial advice from a pensions expert.

• Will your employer be willing to make contributions into your SIPP?
• What are the benefits of your current pension and would you lose these if you transfer it?
• Is your current pension going to be flexible when you want to access your benefits?
• What options will your beneficiaries have to inherit your pension when you die?
• What types of investments do you want to access?

In nearly all cases, if you have a final salary pension (defined benefit), then transferring this is often not a good choice and speaking to a financial adviser is highly recommended. Even if you are not on a final salary scheme. Similarly, if your workplace pension is a defined contribution scheme, often referred to as money purchase, you should review your answers carefully and consider speaking with a financial adviser before making any transfer.