Self-Invested Personal Pension

You may well be aware that that in 2015 the British government introduced some radical changes around what can be done with pension savings. The result is that today, anybody with pension benefits in the UK has more freedom around the type of savings and investments that can be held in a pension – and how and when they can be used in retirement.

These are just a few reasons that the self-invested personal pension (or SIPP) has grown in popularity. Whether you already have pension benefits in the UK, or you simply want more flexibility in your retirement wherever you are based, a SIPP could be your answer.

What are SIPPs?

A self-invested personal pension (SIPP) is, in a sense, a DIY personal pension scheme. But rather than be subject to the restrictions often associated with other types of personal (and company) pension schemes, a SIPP enables you to take control over exactly how you save and invest towards your retirement – hence the name ‘self-invested’.

Similar to most pension schemes, a SIPP is like a shopping basket, within which you can hold different types of savings and investments and receive tax benefits. However, where it differs is that it is likely to give you much more choice and control. If a personal or company pension can be viewed as a small convenience store, a SIPP can be viewed more like a supermarket – giving you access to the whole range of different products and the best of breed investment and saving products. On top of this, a SIPP also gives you more options when it comes to using your pension pot once you decide to retire.

 

 

 

Initially, SIPPs were designed to provide individuals with the flexibility to manage their own pension investments. But you don’t have to manage your own assets – in fact, many people that hold SIPPs lack the time and the experience to keep on top of their own investments. Instead, they opt to use a wealth manager to look after the investments on their behalf. In this sense, it is the flexibility of a SIPP that attracts most people.

Click here to download your guide to self-invested pensions

Benefits of a SIPP

There are a number of benefits to investing in a SIPP, including the following:

  • Flexibility - access to your pension pot at anytime
  • Wider and more cost-effective investment options
  • Consolidate schemes to make managing your wealth easier
  • Pass on your pension assets when you die without facing penalties
  • No income tax if you draw benefits outside of the UK

If you are currently working abroad or planning on leaving the UK, then you should take a close look at the advantages of SIPPs. Transferring your UK pension into SIPPs can allow you to reap more of the benefits of your retirement savings.

SIPPs Guide

Download your guide to SIPPs now!