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Fee & Cost Drag Analyzer

SIPP & Platform Fee Drag Analyzer

Compare core platform custody charges and investment fund fees (OCF) against low-cost benchmarks, with ongoing adviser servicing fees modeled as an optional secondary tier.

Fee Parameters Dual-Scenario Audit
Comparison Presets
£100,000
£500/mo
20 yrs
6.0% p.a.
Pre-fee nominal compound investment growth
Deflates future fee drag & pots by 2.5% annual CPI
Scenario A: Current Scheme 1.95% p.a.
0.45%
Account custody and administration charge
0.75%
Ongoing charges figure deducted directly by fund managers
0.75%
Annual fee for ongoing advice (set to 0% if execution-only)
Scenario B: Low-Cost SIPP Benchmark 0.30% p.a.
0.15%
Low-cost modern SIPP administration charge
0.15%
Passively managed global index fund charge
0.00%
No ongoing advisory fee (DIY investor model)
Wealth Drag & Compounding Gap Comparative Projection
Total Wealth Lost to Fees (Fee Drag)
£123,246
23.6% lost vs. low-cost benchmark (0.30% SIPP)
Direct Cash Fees
£73,745
Lost Compound Growth
£49,501
Lost Annual Income
£4,930/yr
Scenario A (Pot at Retirement): £398,624
Scenario B (Pot at Retirement): £521,870

Wealth Trajectory & Fee Drag Gap — Scenario B  |  ┄ Scenario A

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Receive a comprehensive fee breakdown to compare against your current charges over your retirement timeline.

Impartial Statutory Guidance: This analyzer is an educational illustration tool modeling the compound impact of platform custody, fund management (OCF), and adviser fees on nominal figures with no inflation adjustment, contributions treated as gross with no tax relief applied, and illustrative fee levels rather than provider quotes. It does not constitute regulated financial advice. For free, impartial guidance on pension fees, charges, and consolidation, visit MoneyHelper or book a session with Pension Wise.

What These Terms Mean & How Fee Drag Affects Your Retirement

Pension charges are rarely presented as a single simple deduction. Instead, UK pension providers, investment platforms, and fund managers unbundle their charges into multiple tiers. Because fees are deducted directly from your underlying investments rather than invoiced separately, even small fractional percentages compound silently over decades, drastically reducing your eventual pot at retirement.

1. Platform Fee (Custody & Administration)

The annual charge levied by the investment platform or SIPP provider for holding your assets, maintaining digital records, and executing trades. According to the Financial Conduct Authority (FCA), typical UK platform custody charges range from 0.15% to 0.45% annually, though fixed-fee providers charge flat rates between £100 and £300 per year.

2. Fund Charges (Ongoing Charges Figure / OCF)

The fee deducted internally by asset managers to run your investment funds. Passively managed global index tracker funds typically charge between 0.07% and 0.22% p.a., whereas actively managed mutual funds and lifestyle default funds often levy between 0.65% and 1.25% p.a. without guaranteeing superior net returns.

3. Ongoing Financial Adviser Fee

If you employ a regulated Independent Financial Adviser (IFA) or wealth manager, an ongoing servicing fee (typically 0.50% to 1.00% p.a.) may be deducted from your pension pot. While holistic financial planning adds substantial value during complex retirement decumulation, ongoing percentage fees during simple accumulation can double total fee drag.

The Compounding Effect: Why 1% Matters

When fees are deducted from your pension pot, you do not just lose the pounds paid in fees today—you permanently surrender the future compound investment growth that those pounds would have earned over the following 10, 20, or 30 years. As highlighted by The Pensions Regulator (TPR) and independent consumer research, an apparently small 1.0% fee difference can erode between 20% and 30% of your total eventual pension wealth over a typical working lifetime.

Authoritative Sources: Financial Conduct Authority (FCA) Investment Platforms Market Study; The Pensions Regulator (TPR) Defined Contribution Scheme Guidance; Pensions and Lifetime Savings Association (PLSA) Retirement Living Standards.