DIY Pensions with SIPPs
If you prefer a ‘do it yourself’ approach to your pension pot, we’re here to help you navigate the complexities of Self Invested Personal Pensions (SIPPs).
Unlike traditional personal pensions which limit your investment choice and capability, a SIPP is ideal for investors who wish to diversify their options for greater returns. They are flexible and tax efficient way to save for retirement.
A quick guide to SIPPs
What is a SIPP?
A Self-Invested Personal Pension is a scheme that offers a greater level of flexibility and greater investment choices compared to conventional pensions. A SIPP may also be referred to as a ‘wrapper’ due to the fact that any investments you have placed within this ‘wrapper’ are dealt with in a certain manner.
Most people from the UK under the age of 75 are eligible to apply for a SIPP, but it is important you seek advice from a financial adviser if you are not a seasoned investor.
What can I invest in?
There are a range of investments you can select for your SIPP, including: stocks and shares, commercial property, deposit accounts, unit trusts, government securities, insurance company funds and more
What are the costs?
The charging structure depends on the SIPP and the investments that you choose. The annual charges applied to SIPPs usually start from around £250 + VAT or can be 1% of the transfer value, making it even more cost-effective. Also, there may be an additional one-off payment which starts from around £250 + VAT to set up the policy. You should note that the above figures are the approximate minimum charges only.