The same £100,000 invested into a fund that performs at 7% but only charges 1.5% will be worth £485,410 – More than double. A better return can never be guaranteed, but more appropriate investment choice, such as that offered by a financial adviser, may give you the best chance of achieving one.
A SIPP (Self Invested Personal Plan) can provide a huge amount of investment choice and if use in the correct manner can act as a good tax wrapper for someone looking to consolidate into a personal pension. SIPP’s have been given a bit of bad press recently due to the investments that have been placed into them, rather than the SIPP themselves – For example people being advised to buy something like Australian farmland, car parking spaces etc and place them into a SIPP. The issue is with the SIPP it’s the assets that are in the SIPP that are questionable. Most adviser will stick to the main assets classes – Cash, Fixed Income (Bonds and Gilts), UK Commercial Property, Stocks & Shares. If in doubt get a second opinion.