Savings and investment service Wealthify has introduced tiered fees for its self-invested personal pension (SIPP) amid a lack of saver awareness about how much they are paying in fees.

Its management fee will be 0.6 per cent for the first £100,000, before being reduced to 0.3 per cent on balances thereafter.

The fees are used to cover the ongoing management of SIPPs by Wealthify’s investment team.

Wealthify research found that nearly three-quarters (71 per cent) of pension savers do not know what they are paying in fees, or do not realise they paid any fees at all.

Its customers will be able to access a diversified SIPP, managed by Wealthify’s investment team, with the updated fee structure.

Commenting on the announcement, Wealthify CEO, Richard Ambrose, said: “I’m thrilled to announce Wealthify’s new tiered pension fees today, designed so that pension savers can keep more of their hard-earned money.

“Too many people are unaware of what they are paying in fees. It’s our duty as pension providers to make this clear. Fees are charged as a percentage of the pension pot, so the more you put in, the more fees will eat into your retirement savings.

“Whatever stage people are at with their pensions, I hope Wealthify’s new tiering inspires them to review their fees and vote with their feet so that they aren’t paying more than they need to.”

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