Introduction to SIPPs

SIPPs stands for ‘Self Invested Personal Pensions’. You can, with the help of an Independent Financial Adviser (IFA), control your pension investment with SIPPs, rather than relying on a pension fund manager.

They are effectively pension investment funds which allow you to decide where and how much to invest when it comes to planning for your retirement. As such, they have become one of the most popular investment vehicles because of the freedom they provide the investor and also their tax efficiency.

At a time when many people feel let down by the poor performance and instability of standard pensions, SIPPs offer far more control, choice and flexibility.

Unlike other pensions, a SIPP allows you to take control of your future. You can make key decisions about your pension which will help support your ideal retirement.

Key Features of SIPPs

Control

SIPPs allow investors to control their own retirement planning. You can control how much you invest in your SIPP, where it is invested, and how the benefits are paid upon retirement or death.

Choice

SIPPs offer a range of investment options, from investment trusts to equities; from unit trusts to real estate. In one vehicle, you have the choice of investing across multiple asset classes. SIPPs also offer more options when it comes to taking retirement benefits.

Flexibility

You can hold SIPPs alongside other pensions; your employer can make contributions to your SIPP and you can even transfer existing or frozen pensions from employers into your SIPP.

Tax efficiency

SIPPs are highly tax-efficient; they allow for multiple contributions and are entitled to full Income Tax and Capital Gains Tax relief. Upon death, the entire SIPP fund can be passed on to the person of your choice, without incurring inheritance tax.