Self Invested
Self Invested Pensions in South East London
Self Invested Personal Pensions in London
Self Invested Pensions(SIPPs) - A SIPP is a Self Invested Personal Pension Scheme that provides you with the option of choosing when, where and how you invest the assets of your pension fund. Any contributions that you make to a SIPP will receive tax relief of between 20% and 40% depending on what the current tax rates are and what personal tax band you are in. The investment limits generaly increase each year.
SIPPs have been around for a long time, since 1989, but after the introduction of Pension Simplification legislation in 2006, SIPPs have become more accessible. Until recently, SIPPs have not fallen within the regulation of the Financial services Authority (FSA) but this has now changed. Consequently more investors are feeling comfortable with taking control of their pension planning.
With a SIPP you are free to invest in: Unit Trusts, OEICs, Investment Trusts, Insurance Company Funds, UK Gilts, UK Shares, US & European Shares, Bonds, PIBS, Cash & Deposit Account and Commercial Property.
The most important thing to remember is that the range of available investments depends largely on the choice of SIPP provider. Ultimately it is down to the trustees of your pension plan to agree whether they are happy to accept your investment choices into the SIPP. After all, the trustees are responsible and liable for ensuring that the investment choices fall within their remit.
In its simplest form, a SIPP allows an investor much greater access to the investments markets and puts the investor in control of their pension planning.
Areas to consider when selecting a SIPP provider: Charges, Existing Pension Fund size, Range of investments needed and Administration.
Historically SIPPs had high entry levels (> £100,000) but this has changed drastically in the last two years. However, clearly the larger the fund size the greater the scope of flexibility in investment choices.
As a general guide, pension funds of around £50,000-£100,000 should consider some of the lower cost online fund supermarket solutions available.
For larger funds (£100,000 - £250,000) there are a range of insurers and stockbrokers that would provide a cost effective and flexible SIPP that would allow for a reasonably comprehensive range of investments.
For funds of over £250,000 a more bespoke trustee based SIPP may be required which would allow access to the whole range of SIPP investments.
On reaching the stage when you may wish to access your SIPP the flexibility of the product comes to the fore - you can access tax free cash without having to take the income, take the level of income you wish without stopping work - you can also pass on your savings to a family member in the event of your death.
Selection of your SIPP is not straightforward, however we have access to the tools required. Just give us a call and we can discuss this with no obligation to you.