SIPPs
SIPPs were introduced in 1989 to give those planning for retirement greater control over where their pension fund is invested. It allows individuals to choose how they want to save towards their pension, with the added benefit of flexibility.
A SIPP is essentially a pension wrapper that is capable of holding various investments and providing you with tax efficient savings for when you retire. As a form of personal pension scheme SIPPs offer you the freedom to choose and manage your own investments. However, a SIPP can have higher charges than other pensions and tends to be more suited for larger funds.
Saving in a tax efficient manner towards your pension is always desirable and the self invested option gives you a much greater range of investment options than allowed by most traditional insurer supplied pension plans.
Investment is allowed into Equities (both UK and foreign), Stocks and Shares, Unit Trusts, OEICs, Gilts, Hedge Funds, Investment Trusts and Commercial Property to name a few.
This flexibility allows you to spread the risk of products performing badly. However, active management is essential to maximise the benefits of the wider investment choice on offer.
If you would like to know more about the Samuels Financial and the St. James’s Place range of pensions, please contact us.
