As more individuals look to take control of their retirement destiny with a self-invested personal pension, experts says investors should take great care in ensuring the SIPP provider they choose can meet all their needs.

The SIPP market has been under the regulator’s scrutiny in recent years and has also suffered from the economic downturn.

However, SIPPs continue to offer investors a good way of saving for the future, and experts points to them as offering the most flexibility of any pension product currently available in the marketplace.

Here are six top tips for SIPP success from the experts at Hornbuckle Mitchell:

1. Heritage – experience is crucial when it comes to picking a provider. Ensuring that your provider has a deep understanding and proven knowledge of the market will give you peace of mind.

2. Capital adequacy – you need to be absolutely sure that the provider you choose will survive regulatory changes and be in existence for the duration of your retirement so looking at their financial strength is essential. 

The capital adequacy proposals place certain requirements on SIPP operators in terms of the amount of tangible assets they must hold at any one time.

SIPP providers should be more than capable of meeting new regulatory demands if they have a strong and stable business and if they can’t, they shouldn’t be in business.

Choosing the right provider cannot be done on a whim – you need peace of mind that your provider can be relied upon to protect your retirement savings in the long term.

3. Support – a provider that offers support is important. Clients often have questions and while financial advisers will have an understanding, it can help to have a provider present to explain the technicalities involved and come up with solutions to suit individual circumstances. 

4. Flexibility – flexibility is name of the game when it comes to SIPPs. Borne out of a desire to give investors greater control over their pension, a SIPP provider should provide the full range of retirement options.

Choosing a product for life is a decision that cannot be taken lightly and it is worth talking through all possible avenues. It’s also important to know what a provider will allow in terms of investments.

5. Fees – it may seem obvious, but understanding the fees and exactly what they entail is vital. When it comes to certain assets, such as commercial property, providers may use “time-costed” so it’s worth knowing what a particular transaction involves.

Making sure the fees are clear from the outset can prevent you from receiving a nasty surprise further down the line.

6. Small print – as the saying goes, “the devil is in the detail.” Be careful to read the small print concerning charges and requirements. Some providers stipulate that you need to use their professional connections or risk incurring extra costs.

Clarity around costs and knowing exactly what is expected of you and what the provider will offer is invaluable.