What is a SIPP?

A Self Invested personal pension, more commonly knows as a SIPP – is a type of private pension that gives you more hands-on control of where your retirement funds are invested compared to a standard pension.

SIPPs work in the same way as any other personal pension, you can add money into your funds at any time plus; currently, the government will top up your investment with an extra 20% boost.

This extra boost is called Basic-rate tax relief and every UK resident under 75 years qualifies.

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What is a SIPP?

A Self Invested personal pension, more commonly knows as a SIPP – is a type of private pension that gives you more hands-on control of where your retirement funds are invested compared to a standard pension.

SIPPs work in the same way as any other personal pension, you can add money into your funds at any time plus; currently, the government will top up your investment with an extra 20% boost.

This extra boost is called Basic-rate tax relief and every UK resident under 75 years qualifies.

Who is a SIPP good for?

As a self-invested personal pension gives a far higher level of control, a SIPP could be ideal for those people who are experienced and successful investors. Maybe you have had some success in the stock market already and have the time and dedication to make those critical investment decisions that could affect your future.

You are in complete control of how and where your money is invested, and it is your responsibility to make the decisions that will determine how your pension pot performs. As with all investments, the value of your funds may go down as well as up and you may not get back as much as you have invested. As the investor, you will need to understand the risks and the security you will be giving up before you decide to transfer the pension funds into a SIPP.

If you are not an experienced investor or prefer a little more security with your retirement and life savings, then a self-invested personal pension may not be right for you. It’s advisable to speak with your financial adviser or pension specialist before deciding to invest or transfer your funds into a SIPP.

Who can open a SIPP?

If you’re a UK resident and under 75 years old you can open a SIPP and start paying in. You can also transfer existing private or old workplace pensions into your SIPP, but some pensions may be best left where they are due to penalties or guarantees you could be giving up. You will be making your own decisions with a SIPP so fundamentally you will be running your own pension scheme.

How can Pension Works help?

When making your own investment decisions, it’s wise to get the performance of your pension regularly evaluated, to see how your investments have performed against the market and if you’re on track. If you are getting closer to the retirement age you desire, your attitude to risk may have changed, and you’re looking for a more secure pension investment then transferring your SIPP into a multi-asset fund may be beneficial.

At Pension Works, we can assess your current pension performance and if appropriate, make recommendations to secure your retirement funds.

Call 0808 164 2664 today or fill out the form above.

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Our open and transparent service always puts you first, and our advice would be in your best financial interests.

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As independent financial advisers, we are not tied to any pension provider. This allows us to work with the whole of the market; ensuring we find the right pension for you.

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