Self Invested Personal Pensions, SIPPs Pensions
01252 861380Self Invested Personal Pensions
Self Invested Personal Pensions (SIPPs) were first launched as long ago as 1989 by Nigel Lawson, in order to facilitate greater investment flexibility. SIPPs were initially aimed at wealthy clients and business owners. However, since Pensions Simplification or 'A-day' (6th April 2006), SIPPs are now more commonplace.
What are SIPPs?
SIPPs are simply Personal Pension Plans but with much greater investment flexibility. In the same way Personal Pension Plans are, SIPPs are effectively investment ‘wrappers’ with significant tax advantages. In particular, contributions attract income tax relief up to 40% and investments within SIPPs grow virtually free from tax.
For pure SIPPs, the wrapper would normally be provided by a specialist company and the investments then purchased from other providers across the market. HM Revenue and Customs allows a wide range of investment choice, freeing the SIPP to invest in a wide range of different types of investments (otherwise known as asset classes), including commercial property.
This presents the investor with a number of potential dilemmas, for example:
- With so many products on the marketplace - Where is the best place to invest?
- Which SIPPs represent the best value?
- What are the costs involved in setting up a SIPP?
- Is a SIPP suitable for me?
Pensions & Wealth Planning can help answer these questions, through a full retirement planning advisory service, which takes account of your circumstances, attitude to investment risk and the current plans you have in place.