What you need to know: Best UK SIPP platform for 2026/27
Quick answer: For most UK SIPP investors in 2026/27: Vanguard SIPP wins on cost above £100k (0.15% capped at £375/yr). AJ Bell SIPP is the best mid-balance choice (0.25% capped at £120/yr for shares/ETFs). Interactive Investor (£12.99-£21.99/mo flat) wins decisively at £250k+ portfolios. Below £50k, robo-advisor SIPPs may make sense for hands-off investors.
Key points:
- Choosing on accumulation fees, ignoring drawdown. If you re within 10 years of retirement, model the total cost across both phases — drawdown lasts 20-30 years.
- Switching to flat-fee too early. Interactive Investor is great at £200k+ but loses to Vanguard at £50k. Watch the breakeven point.
- Forgetting the Annual Allowance. SIPP contributions are limited to £60,000/yr (gross, with taper above £260k adjusted income). Choosing platform doesn t change this rule.
For most UK SIPP investors in 2026/27: Vanguard SIPP wins on cost above £100k (0.15% capped at £375/yr). AJ Bell SIPP is the best mid-balance choice (0.25% capped at £120/yr for shares/ETFs). Interactive Investor (£12.99-£21.99/mo flat) wins decisively at £250k+ portfolios. Below £50k, robo-advisor SIPPs may make sense for hands-off investors.
The 6 main UK SIPP platforms
| Platform | SIPP platform fee | Dealing | Drawdown fee | Min investment |
|---|---|---|---|---|
| Vanguard SIPP | 0.15% capped at £375/yr | £0 funds; £7.50 ETFs (manual) | £0 | £500 / £100 monthly |
| AJ Bell SIPP | 0.25% funds (no cap); 0.25% shares/ETFs capped £120/yr | £5 (£1.50 regular) | £0 on drawdown setup; £25/ETF transfer to drawdown | £25 |
| Hargreaves Lansdown SIPP | 0.45% funds (tapered); 0.45% ETFs capped £200/yr | £11.95 (£5.95 regular) | £0 | £100 |
| Interactive Investor SIPP | £12.99-£21.99/mo flat (depending on plan) | £3.99/trade (free trades included in plan) | £0 | £25/mo |
| Freetrade Plus SIPP | £11.99/mo | £0 | £0 | £2 |
| InvestEngine SIPP | 0% on DIY; 0.25% on managed | £0 | Drawdown not yet available | £100 |
SIPP cost over 30 years at different balances
| Balance / strategy | Best platform | ~Annual cost |
|---|---|---|
| £25,000 mostly funds | Vanguard SIPP | £37.50 |
| £100,000 mostly funds | Vanguard SIPP / AJ Bell SIPP | £150 / £250 |
| £100,000 mostly ETFs | Vanguard SIPP / AJ Bell SIPP | £150 / £120 |
| £250,000 mostly funds | Vanguard SIPP | £375 (capped) |
| £250,000 mostly funds (Interactive Investor) | Interactive Investor Pension Builder (£12.99/mo) | £156 |
| £500,000 mostly ETFs (flat-fee winner) | Interactive Investor | £156-£264 |
| £1m+ portfolio (flat-fee wins) | Interactive Investor Pension Builder | £264/yr regardless of balance |
The crossover where Interactive Investor’s flat fee beats Vanguard’s capped 0.15% sits around £200k-£260k portfolio. Above that, Interactive Investor is the cheapest serious option.
Drawdown considerations — sometimes more important than accumulation fees
If you’re within 10-15 years of retirement, the drawdown fee structure matters as much as accumulation fees. Most SIPPs charge nothing to enter drawdown today (post-2018 regulatory pressure), but ongoing drawdown costs vary:
| Platform | Drawdown ongoing fee | UFPLS / flexi-access setup |
|---|---|---|
| Vanguard SIPP | Same 0.15% platform fee | £0 setup, supports both UFPLS and flexi-access |
| AJ Bell SIPP | 0.25% (no cap on funds; £120 cap on shares) | £0 setup, supports both |
| HL SIPP | 0.45% tapered; ETF cap £200 | £0 setup, supports both |
| Interactive Investor | £12.99-£21.99/mo flat continues | £0 setup |
| Freetrade Plus | £11.99/mo continues | UFPLS only, no flexi-access |
For a £300k SIPP in drawdown, the annual cost difference between Interactive Investor (£156-£264) and HL (~£1,350) is ~£1,000-£1,200 a year. Over a 25-year retirement that compounds to £30,000+ of difference.
Decision framework by balance and stage
Best for SIPP £0 - £50k
Best for: Early-career savers building a pension
Vanguard SIPP (0.15%) for fund-heavy. InvestEngine SIPP (0%) for ETF-only. Both offer free transfers in to consolidate old pots from previous jobs.
Best for SIPP £50k - £200k
Best for: Mid-career pension builders
Vanguard SIPP at the lower end (still capped at £375). AJ Bell SIPP for share/ETF investors valuing the £120 cap. HL SIPP if you value research and service and have already chosen HL ISA.
Best for SIPP £200k - £500k
Best for: Senior career with consolidated pensions
Interactive Investor Pension Builder (£12.99/mo = £156/yr). Flat fee beats any percentage model at this balance. Trade-off: dealing fee per trade after monthly free.
Best for SIPP £500k+
Best for: High-net-worth pension
Interactive Investor at £21.99/mo (more trading included) = £264/yr regardless of balance. The fee gap vs HL at this balance is £2,000+/yr.
Best for hands-off pension
Best for: Investors who want managed portfolio
Nutmeg SIPP (0.75% managed, dropping to 0.35% above £100k). Higher fees but full management. Reasonable case for £50-200k balances where management is genuinely valued.
Mistakes when choosing a SIPP
- Forgetting pension contributions are 50%+ tax-relieved. Spending an extra 0.30% on platform fees feels expensive but is dwarfed by the 40% income tax relief on contributions. Pick the platform that lets you invest sensibly, then maximise contributions.
- Not consolidating old pensions. Most workers have 3-5 old workplace pensions by age 45. Transferring them to a single SIPP often saves 0.5-1% in legacy fees and simplifies drawdown planning. See pension consolidation comparison.
- Choosing on accumulation fees, ignoring drawdown. If you’re within 10 years of retirement, model the total cost across both phases — drawdown lasts 20-30 years.
- Switching to flat-fee too early. Interactive Investor is great at £200k+ but loses to Vanguard at £50k. Watch the breakeven point.
- Forgetting the Annual Allowance. SIPP contributions are limited to £60,000/yr (gross, with taper above £260k adjusted income). Choosing platform doesn’t change this rule.
Plan your pension contributions
The pension annual allowance calculator handles tapering, carry-forward, and employer contributions. The salary sacrifice calculator shows the most efficient contribution method.
Open the AA calculator →How we built this comparison
Fee and feature data is taken directly from each provider’s published website as of 2026-05-12. UK Tax Drag has no commercial relationship with any platform listed — no affiliate links, no referral codes, no sponsored content. The methodology page documents our comparison standards. The independence page confirms our funding model.
This page is educational only and is not regulated financial advice. The choice of platform depends on your personal circumstances, investment style, and balance. Always read the provider’s key facts document and verify the latest fees before opening an account. Past performance is not a guide to future returns. Investments can fall as well as rise.
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