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Self-invested personal pensions (Sipps) Is a Sipp pension for you?
Pension transfers into Sipps
Consider carefully whether a Sipp might be the right choice for you - look at all pension options
Sipps can be an attractive home for existing pension ‘pots’ currently tied up in other schemes.
If you’ve worked for several employers, you’re likely to have multiple pensions, and bringing them together may reduce fees and give access to better investment performance.
Some 47% of Which? members with pension savings belong to two or more schemes, although only 7% have a Sipp.
Pension transfers make up a high percentage of most Sipps but not all pension schemes are suitable targets for such a switch.
Final salary options for Sipps
These (defined benefit) schemes normally offer an unbeatable deal.
As well as a guaranteed pension, they provide generous benefits for spouses that are hard to replicate in private schemes.
So they’re unlikely to be suitable for transferring into a Sipp.
Defined contributions into Sipps
Defined contribution schemes (DC) are the more likely transfer candidates.
The pension they pay depends on investment performance and, for many schemes, this has been disappointing.
It’s normally not worth moving if you’re a current member of an employer’s DC scheme, however, as you would lose your employer’s contribution.
However, some employers will agree to make payments into your Sipp instead.
Personal pension switch to Sipps
If you belong to a private personal pension scheme, switching to a Sipp may be more worthwhile.
But be careful to check for any exit penalties, such as the MVRs (market value reductions) levied by some with-profits funds.
SIPPs - Self Invested Personal Pensions
Self Invested Personal Pensions are the fastest growing retirement vehicle in the market place, there are becoming a mainstream product in UK investment planning.
Have you pension fund you are not happy with? Do you need to take pension benefits? Are you looking for a way to fund a commercial property purchase? Do you need to talk to someone who can understand your pension problems?
Sipps – who are they good for?
By Lucy Warwick-Ching
Self-invested personal pensions (Sipps) are being used by a rising number of private investors keen to take control of their retirement planning – but experts warn that these DIY plans are not suitable, or necessary, for everyone.
So imagine someone saying to you: "Have you thought about SIPP?"
What is a SIPP?
A SIPP (Self Invested Personal Pension) is a tax-efficient pensions account where you can hold investments in shares, funds and cash (thus sheltering them from tax), with the added advantage of tax relief on your contributions.
You can pool existing investments, including any company pensions you may have collected through your career, and aggregate them in a single place. You can then become your own pension manager, choosing what and when to buy and sell.
Our SIPP Account benefits:
No set-up fees Administration fee of just £120+VAT per annum 100% rebate of all income and commission we receive, on every fund Base rate interest paid on all cash holdings Wide investment choice from UK and international shares to over 2,800 funds £100 towards your transfer costs when you open an account (terms and conditions apply*) Buy shares and funds from just £1.50
Sipps
Self invested personal pensions are better known as Sipps. A Sipp gives you the flexibility to choose where your pension money is invested.
Private investors looking beyond conventional investments are being offered a broad choice of funds for inclusion in their self-invested personal pensions (Sipps), but advisers warn that alternative investments are not for everyone.
According to research from Sipp Investment Platform, which conducts due diligence on investments on behalf of providers, there were about 50 alternative investments available for Sipps in 2007. Today there are almost 300.
The Fidelity Personal Pension is a low-cost Self Invested Personal Pension (SIPP), provided by Standard Life with the benefits of Fidelity's expertise.
See everything in one place - monitor and manage your retirement savings alongside your other Fidelity holdings online.
Invest from £300 per month or £10,000 lump sum to get your pension off to a
great startUse our tools and guidance to help you make the right fund choice for your
pension
What is a SIPP?
A self invested pension plan (SIPP) is a pension plan that you have control over and therefore offers a great amount of flexibility.
Why choose a SIPP?
SIPPs permit a much wider choice of investment assets than other pensions, including:
Funds, equities, corporate and government bonds Commercial property Specialist investments, such as hedge funds and debt instrumentsAnd, compared to traditional arrangements, SIPPs typically offer more flexibility when it comes to withdrawing funds from your pension.
You should always take professional financial advice before you take out a SIPP.
