Aviva SIPP Review | How The Charges Compare

by | Feb 19, 2024 | SIPP Reviews

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Are you considering Aviva’s Self-Invested Personal Pension (SIPP) plan as a potential option for your retirement savings?

While it’s not the cheapest SIPP on the market, it is competeivly priced (more on that later). And with the wide range of investment options available along with Aviva’s strong reputation in the investment space, their SIPP is option.

Let’s look at how it compares more closely.

Key Takeaways:

  • Online reviews for Aviva’s SIPP plan are mixed, with some customers praising the website and customer service, while others express concerns – with such a big user-base it’s fairly common to have both lovers and haters.
  • Fees for Aviva’s SIPP plan can be up to 0.4% of investment value, but then are steadily reduced for portfolios over £50,000. Not the cheapest, but not the most expensive either (use our calculator tool below to get a comparison).
  • The website, platform and app are all generally very good. Aviva invests heavily in their technology and user experience, as well as their customer service teams – all of which are important for SIPPs.

While you’re here, read our SIPP provider comparison guide that includes a comparison of the rest of the SIPP market more broadly.

Aviva SIPP Review – Fees and Charges

Before committing to Aviva’s SIPP plan, it’s essential to have a clear understanding of the fees and charges that come with it. This will help you assess the affordability and potential impact on your investments.

Annual Management Charge

The main fee you’ll encounter with Aviva’s SIPP plan (as with any SIPP) is the Annual Management Charge (AMC).

This fee covers the administration and management of your pension fund.

And like most other SIPP providers, Aviva charges separate amounts for holding funds vs equities. Funds refers to unit trusts and OEICs, while ‘equities’ refers to shares, investment trusts, ETFs, bonds (and anything else traded directly on a stock exchange).

Firstly we’ll look at funds: Aviva charges a tiered AMC for holding funds, meaning that the percentage you pay decreases as your investment value increases.

For portfolios valued up to £50,000, the AMC is 0.4%. As the value increases, the fee decreases, with portfolios valued above £500,000 incurring 0% charges for the balance over that amount.

Investment ValueAnnual Management Charge (AMC)
Up to £50,0000.4%
£50,001 – £250,0000.35%
£250,001 – £500,0000.25%
Above £500,0000%

Based on the above, the most you can pay for holding funds with Aviva is £1,525.00 per year.

For holding equities within an Aviva SIPP, it’s the same 0.4% but it’s capped at £120 per year (which equates to having about £30,000 of shares in your SIPP).

Therefore the total maximum you’d pay for an Aviva SIPP including the AMC for both funds and shares, is £1,645.00 per year.

As per how that compares to other providers, it depends on both the value of your portfolio and how your portfolio is split between funds and shares. We recommend using our calculator below to get a comparison.

SIPP Provider Fees Calculator

If you know roughly what assets your SIPP portfolio is going to consist of, you can enter the values into our SIPP fees calculator below to get a rough estimate of the annual fees each SIPP provider would charge you based on their fee structures.

It’s split between funds and equities because some providers charge different amounts for each asset class (this is worked into the calculator).

Note: The ongoing fees for your SIPP are only one type of SIPP charge, so are not the only factor to consider (although it is the most significant charge you’ll pay). Also, you should think about other SIPP features and benefits including customer service, and the user experience of the platform.

Trading Charges

In addition to the AMC, other charges include transaction charges for buying and selling equities.

Aviva charge a flat fee of £7.50 for each trade in shares, exchange-traded funds or investment trusts, regardless of value (they don’t take a percentage commission). Again, not the cheapest, so if you’re trading regularly in your SIPP you might want to consider other options, but these charges are cheaper than Hargreaves Lansdown, for example.

They also don’t charge you for buying or selling investment funds which is good (although most SIPP providers are like this).

Other Charges

There are no transfer charges for consolidating pensions from other providers into Aviva’s SIPP, and there are no charges for taking income from your pension.

It’s important to review the plan’s terms and conditions to understand these charges fully.

Summary of Fees and Charges

It’s worth noting that while Aviva’s fees are competitive, they’re not often the most cost-effective option. Use our calculator above to compare its fees to other SIPP providers.

Consider your investment value, the services provided, and any additional charges when evaluating the affordability and suitability of the plan.

Aviva SIPP Performance and Benefits

The performance of Aviva’s SIPP depends on what you invest in, so it’s difficult to compare it to other SIPP providers.

However, Aviva have a very good range of funds and equities available to invest in, so your options for diversification are great.

You have the flexibility to choose from a range of investment options suited to your risk appetite and financial goals.

Whether you prefer actively managed funds or a more hands-on approach with individual stocks and shares, Aviva offers investment options to cater to your preferences.

A Few More Benefits of Aviva’s SIPP Plan

  • Tax Efficiency: Aviva’s SIPP allows you to benefit from tax relief on your pension contributions, thus maximising the growth of your retirement savings. The government typically adds an additional 20% to your investment pot, providing an attractive incentive.
  • Flexibility: Aviva’s SIPP plan offers flexibility in terms of retirement options and payment choices. You can choose to pay into your pension monthly, annually, or in one-off amounts, depending on your financial circumstances and preferences.
  • Death Benefit: Aviva’s SIPP plan also offers the option to leave money to a loved one in the event of your death. This feature provides peace of mind, knowing that your hard-earned savings can support your family even after you’re gone.
  • Consolidation: Aviva allows individuals to consolidate multiple pensions into one, simplifying the management of your retirement funds. By consolidating pensions, you can have a clearer overview of your investments and potentially reduce administrative fees.

It’s important to consider your investment goals, risk tolerance, and individual circumstances before making any decisions. Consulting with a financial advisor can provide valuable insights and guidance tailored to your specific needs.

Key Benefits of Aviva’s SIPP PlanPerformanceFlexibilityTax EfficiencyDeath BenefitConsolidation
SummaryConsistent growth and potential for significant returnsChoice of payment options and retirement flexibilityTax relief and government contribution of 20%Option to leave money to a loved one in the event of deathAbility to merge multiple pensions for simplified management

Aviva SIPP Customer Reviews and Ratings

Hearing from other customers can provide valuable insights into the overall satisfaction and experience of investing in Aviva’s SIPP plan.

Aviva’s SIPP plan has generally received mixed reviews from customers.

Some individuals express frustration with the company’s customer service and communication. They have reported difficulties in reaching Aviva’s support team and receiving timely responses to their queries. This is fairly common among all SIPP providers – there will be periods of business and slow responses.

However, on the positive side, many customers have praised the user-friendly interface of Aviva’s website and the ease of managing their investments online.

They have also found the platform to be intuitive and convenient, allowing them to monitor their SIPP accounts and make necessary adjustments with ease.

Positive ReviewsNegative Reviews
Easy-to-use website interface
Convenient online access to SIPP accounts
Responsive and helpful customer service
Difficulties in contacting customer support
Delays in response times

Aviva SIPP Retirement Planning Options

Aviva’s SIPP plan offers a range of retirement planning options that allow investors to customise their pension strategy. Let’s explore the flexibility it provides.

Aviva’s SIPP offers flexibility in terms of payment options.

Investors can make regular monthly contributions, annual payments, or even one-off lump sum investments. This allows you to adapt your pension savings to your financial circumstances and retirement goals.

You can also make changes to these contributions as needed, giving you the ability to adjust your strategy over time.

Table: Aviva’s SIPP Retirement Planning Options

Retirement Planning OptionsDescription
Wide range of investment optionsChoose from stocks, bonds, mutual funds, and more to create a diversified pension portfolio.
Flexible payment optionsMake regular monthly contributions, annual payments, or one-time lump sum investments that suit your financial circumstances.
Ability to adjust contributionsModify your payment amounts as needed to align with your changing financial situation and retirement goals.

Whether you prefer a conservative or aggressive investment approach, Aviva provides the tools and flexibility to tailor your plan to suit your needs.

It’s important, however, to carefully consider your risk tolerance and consult with a financial advisor to ensure your retirement strategy aligns with your long-term goals.

Aviva SIPP Investment Options

Looking to diversify your retirement portfolio? Aviva’s SIPP plan offers a variety of investment options to suit different risk appetites and goals.

Diversification and Flexibility

One of the key advantages of Aviva’s SIPP plan is the ability to diversify your investments.

By spreading your money across various asset classes and sectors, you can reduce the impact of any single investment’s performance on your overall portfolio.

This diversification can help mitigate risk and potentially enhance your long-term returns.

Investment OptionsRisk Level
Equity FundsMedium to High
Bond FundsLow to Medium
Multi-Asset FundsMedium
Alternative AssetsMedium to High

It’s important to note that all investments come with risks, and the value of your investments can go up or down. It’s recommended to review your investment strategy regularly and seek professional advice if needed.

Key Features and Services of Aviva’s SIPP Plan

Aviva’s SIPP plan comes with various features and services that cater to the needs of pension investors. Let’s explore what sets it apart from other options in the market.

Flexible Retirement Options

Whether it’s taking a lump sum, regular income, or a combination of both, Aviva provides options to suit different retirement goals.

Wide Range of Investment Options

From mutual funds and ETFs to bonds and cash, individuals can build a diversified portfolio that aligns with their investment strategy and financial goals.

Consolidation of Multiple Pensions

Managing multiple pensions can be time-consuming and overwhelming. Aviva simplifies this process by allowing individuals to consolidate their pensions into one SIPP (as most SIPP providers do). This consolidation not only makes it easier to keep track of investments but also reduces paperwork and administrative hassles.

Features and ServicesBenefits
Flexible Retirement OptionsEnables individuals to customise their retirement income based on their specific needs and circumstances.
Wide Range of Investment OptionsGives investors the opportunity to diversify their portfolio and potentially increase returns.
Consolidation of Multiple PensionsSimplifies pension management and reduces administrative complexities.

Conclusion: Is Aviva’s SIPP Plan the Right Choice for You?

Online reviews for Aviva’s Personal Pension Plan are mixed, with some customers expressing dissatisfaction with customer service and communication.

However, others have praised the user-friendly website and friendly customer service experience.

The plan offers flexibility in terms of retirement options and payment choices, allowing individuals to pay in monthly, yearly, or one-off amounts.

Additionally, it provides the option to leave money to a loved one in the event of death, ensuring peace of mind.

When considering fees, it’s important to note that Aviva charges up to 0.4% of the value of investments, with the charge decreasing for larger investment amounts.

The company’s fees are transparent and calculated daily, offering the option to pay fees from cash or investments. Aviva also allows individuals to consolidate multiple pensions into one for easier management.

However, it may not be the most cost-effective option compared to other SIPPs.

FAQ

Q: What is Aviva’s Personal Pension Plan?

A: Aviva’s Personal Pension Plan is a retirement investment product that allows individuals under 75 to save for retirement in a tax-efficient way. It offers flexibility in terms of retirement options and payment choices, and the government adds an additional 20% to the investment pot in most cases.

Q: What other financial products does Aviva offer?

A: Aviva offers a range of financial products, including motor insurance, life insurance, health insurance, home insurance, and investment products such as personal pensions.

Q: What are the fees for Aviva’s Personal Pension Plan?

A: Aviva charges up to 0.4% of the value of investments, with the charge decreasing for larger investment amounts. The fees are transparent and calculated daily, with the option to pay fees from cash or investments.

Q: Can I consolidate multiple pensions into Aviva’s Personal Pension Plan?

A: Yes, Aviva allows individuals to consolidate multiple pensions into one for easier management.

Q: What are the retirement planning options offered by Aviva’s Personal Pension Plan?

A: Aviva’s Personal Pension Plan offers flexibility in terms of retirement options, allowing individuals to choose how and when they access their pension savings. There are various payment options available, including monthly, yearly, or one-off amounts.

Q: What investment options are available within Aviva’s Personal Pension Plan?

A: Aviva’s Personal Pension Plan offers a range of investment options, allowing individuals to build their retirement portfolio.

Q: What are the key features and services of Aviva’s Personal Pension Plan?

A: Aviva’s Personal Pension Plan offers flexibility in terms of retirement options and payment choices. It also provides the ability to leave money to a loved one in the event of death. The plan’s fees are transparent and calculated daily, and Aviva offers friendly customer service as well as an easy-to-use website.

Q: Is Aviva’s Personal Pension Plan the right choice for me?

A: The suitability of Aviva’s Personal Pension Plan depends on individual circumstances and preferences. While it offers flexibility and a range of investment options, you may find more cost-effective options elsewhere.

About The Author

Sam Hodgson

Sam Hodgson

Head of Digital

Sam is our Head of Digital, overseeing all of our editorial and marketing strategies.

He has over a decade of pension industry experience, previously working & writing for the likes of HSBC and Hargreaves Lansdown.

His goal is to empower “non-financey” people to have confidence in making their own financial decisions, particularly on pensions and retirement planning.

Contact: sam@sippadvice.co.uk

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