A SIPP is a Self Invested Personal Pension scheme. It is a type of UK-government-recognised personal pension scheme which allows an individual choose from a wide range of investments that are approved by HM Revenue & Customs ( HMRC). This allows an individual to take back control of any existing pensions they have in place and access global funds available to them through this scheme.
How does a Self Invested Personal Pension (SIPP) work?
With a Self Invested Personal Pension and the correct guidance through a financial advisor, you can chose what type of investments you would like to invest into. This will be determined by your risk appetite and also by the amount of time you have before you retire.
What are the benefits of a Self Invested Personal Pension Plan?
With a Self Invested Pension Plan you take back control of your pension. This is quite the opposite of a company pension scheme, where you have little control of where your money is being invested, or if you are getting good growth on your pension pot.
SIPP’s are becoming more and more popular in the recent years due to some of the key features available to investors. These include –
A SIPP allows you to take back control of your investment and also how it is invested.
SIPP trustee fees are low and cost effective.
A wide range of investments are allowed, including stocks and shares, unit trusts, investment trusts, OEIC’s, insurance company funds and even commercial property which allows individuals to put business premises into the pension fund and the rental income.
Members of a SIPP can access their funds at an earlier stage, meaning that an income can be drawn from the fund. The remainder of the fund will be left in the investment to grow in value. An annuity need not be purchased.
The SIPP Administrator will claim basic rate tax-relief for you if you have any UK earnings.
A SIPP can consolidate all of your existing pensions into one, allowing for easier management and better control.Type your paragraph here.