Self-Invested Personal Pensions
Take control of your retirement savings with a SIPP
The Government is keen to encourage us all to save more for our retirement and has set about updating the rules to make pensions more attractive. Some of the changes, like the abolition of the default retirement age and the ‘triple lock’ link to the state pension will affect everyone. There are also additional proposals to improve the appeal of personal pensions, the most versatile of which is the Self-Invested Personal Pension (Sipp).
Putting money into a pension is the most tax-efficient form of saving and with a Sipp you have full control over where your capital is invested. If the proposed rule changes are approved then there will no longer be a compulsory requirement to use these assets to buy an annuity. This would give people the flexibility to draw a retirement income from their pension fund while leaving the remaining balance to their heirs.
A recent survey of all the major providers found that there are now 650,000 Sipps in the UK, an increase of 25% on the year before. Costs have been coming down, which means these products are now perfectly viable for those with relatively modest contributions. Even those who don’t feel comfortable making their own investment decisions can still take advantage by opting for an advisory or discretionary service...
If you want to know more about Self-Invested Personal Pensions, sign up for a 4-issue, risk-free trial to Shares Magazine today, and get instant access to this free supplement! See the offer details here.
This supplement was written by Nick Sudbury, an experienced financial journalist and trader/investor who has worked both as a fund manager and as a consultant to the industry. He has an MBA and is also a chartered accountant. He will answer all the questions you might have about Self-Invested Personal Pensions in this free supplement:
- What is a Sipp?
- What are the tax advantages?
- How much can you contribute
- Where can you invest?
- What are the options when you retire?
- How much does it cost?
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