WHAT IS A SIPP
A Self-Invested Personal Pension (SIPP) is the name given to the type of personal pension scheme, which allows individuals to have more control of their own investment decisions from the full range of investments approved by HM Revenue and Customs (HMRC).
WHAT ARE THE BENEFITS OF A SIPP
- Investment flexibility
- Tax-effective saving
- Pension consolidation
- Flexible retirement options
- Contribute when it suits you
WHAT CAN A SIPP INVEST IN
There are several things a SIPP can invest in, however, the range of available investments depends largely on the choice of SIPP provider, which means obtaining professional financial advice is important before taking any action.
WHY TRANSFER TO A SIPP
The main difference is that they are personal to the individual member and not company based, i.e. where the employer sets them up for their employees.
Personal pension schemes tend to be more flexible than company pension schemes in terms of the ability to choose investments and to take benefits.
WHAT ARE MY RETIREMENT OPTIONS?
When you decide to retire, you can normally take up to 25% of the value of your pension pot as a cash lump sum without paying any tax. It’s up to you how you take the rest of your fund as a pension. Your options are set out below.