Do you need a SIPP?

Do you want to choose and monitor your own investments?

Whatever type of investment you hold in your SIPP, it will be up to you to select them and keep an eye on performance. This will involve regular monitoring and research. If you're not interested in doing this or don't have the time, it's not a good idea. 

Do you need to use a SIPP?

If you're only investing in funds but want a comprehensive choice and intend to manage the portfolio yourself, you could consider low-cost SIPP-type products offered by fund supermarkets or insurers.

Are you prepared to pay the fees?

It's more expensive to invest through a full SIPP that gives the option of a wider range of assets such as bonds, individual shares or commercial property.

As well as having to fork out for set-up costs of between £300 and £400, you'll also pay annual charges of around £800, plus the extra costs associated with commercial property. It's a waste of money unless you'll make use of that range and flexibility.