Who is a SIPP suitable for?
A Self-Invested Personal Pension gives a far higher level of control and 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.
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 one of our financial advisers who are pension specialists 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 begin contributing. 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.
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.