Self-Invested Personal Pensions

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Self-Invested Personal Pensions

Self-invested Personal Pension plans, or SIPPs, have been available for more than 10 years and whilst they do not suit everyone, more and more people are using them to take control of their pensions, as they allow you to make your own investment decisions.

• Visit the new, dedicated SIPPs section

SIPPs have the same tax benefits as a standard personal pension, as long as the investment is on the approved list issued by the Inland Revenue.

As with any other personal pension, a SIPP is subject to the same contribution limits, (see tax guide) but it does allow you to defer buying an annuity upon retirement.

It allows you to draw down an annual income, whilst at the same time retaining an investment fund.

With a SIPP you are not restricted to the funds of one particular insurance company. You can invest in unit and investment trusts, shares, bonds, gilts or commercial property. Taking into account dealing charges and management fees, a SIPP plan may only be worth taking out if you can invest several thousand pounds per year.

A SIPP can be thought of as a flexible personal pension, with special investment facilities.

• For many other alternative ways to build up a fund for retirement, visit us at Investments.co.uk