SIPP (Self Invested Personal Pension) Explained

The Self-Invested Personal Pension Scheme (SIPP) offers an individual complete control over their assets and the option to choose and manage what types of investments they hold.
Like all approved Pension Schemes, a SIPP is a way of saving for retirement in a very TAX efficient way, especially if you are living overseas. The SIPP has been available since 1989, however due to changing pension regulations, charging structures have changed dramatically and many individuals now find themselves with overpriced, outdated pension plans.
Many older pension plans have had badly performing investments, especially 'with profit' pensions, with little or no bonuses being added. With a SIPP, you will benefit from your investments as they will be actively managed. Also if you are living and working overseas you can benefit from TAX-free growth on your Investments, therefore increasing the opportunity to grow your retirement fund even more.
Many individuals have more than one type of pension scheme; this can be a rather daunting task keeping track of one’s pensions. With a SIPP, all of a person’s pension schemes can be consolidated under one scheme/plan, making it much simpler and cost efficient to manage.
If you have one or more of the following pension schemes, then a review and full analysis of the scheme/s should be conducted to ascertain if a SIPP would be more beneficial:

  • A Personal Pension which is frozen and you are no longer contributing to
  • A Company Pension Scheme which is frozen
  • A Company Pension scheme where the company is no longer trading
  • Paid up Occupational Money Purchase Plans
  • An Executive Pension Plans (EPP)
  • Free Standing Additional Voluntary Contribution Plans (FSAVC’s)
  • Retirement Annuity Contracts
  • An existing SIPP.

A SIPP has many attractive qualities, including:

  • Control
  • Flexibility
  • Increased Investment Options
  • Tax Efficiency (especially for Ex-pats)
  • Plus an individual can take 25% TAX-free lump sum at age 55 or older.

Please contact us to find out more about this investment