As part of the rollout, the bank is offering cashback of up to GBP 1,000 for new investments made by 25 April 2024. The SIPP allows users to manage their pension contributions and investments independently, offering tools to consolidate pensions from various providers into one account.
Account holders can track the performance of their pension through Santander's digital platforms, such as mobile apps and desktop tools. The bank also plans to introduce an advice service for the SIPP in 2024.
A SIPP is often described as a ‘do-it-yourself’ pension, allowing individuals to choose their investment strategies with the aim of building retirement income. In addition to self-selected options, Santander provides access to 850 investment funds, including four ready-made portfolios designed by the bank for customers who prefer a hands-off approach.
Officials from Santander UK emphasised that the new pension product is intended to simplify pension management and offer greater control to savers as they plan for retirement.
The administration fees for Santander's SIPP start at 0.35% annually on balances up to GBP 50,000, reducing to 0.2% for balances between GBP 50,001 and GBP 500,000, and 0.1% for balances exceeding GBP 500,000. However, additional fees apply for buying and selling investments and for the underlying funds within the portfolio.
Santander’s cashback offer is tiered based on the amount invested:
Cashback will be credited by 1 July 2025. However, experts caution that while cashback promotions can be appealing, they should not overshadow considerations about ongoing fees and investment performance. Competitors such as Moneyfarm and Nutmeg have previously offered higher cashback deals, such as GBP 3,000 for pension transfers exceeding GBP 300,000, though these offers have since expired.
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