As an alternative to a traditional pension, a self-invested pension plan – or SIPP – offers a wider range of investment opportunities.
With a SIPP, you can invest in a variety of asset classes, from equities and unit trusts to commercial property and gilts. SIPPs allow you to save towards your pension in a tax-efficient manner while enabling you to benefit from more flexibility and personal choice when selecting your investments. However, the costs associated with SIPPs are usually higher than with traditional pensions, and active management is required in order to make full use of their features. Because of this, they will not be suitable for everybody and generally only those who have a good amount of experience in actively managing their investment should consider this type of investment.
In common with many financial products, SIPPs are not the best choice for everyone, but if you have good experience of managing your own investments, you may find them to be an attractive choice for you. We can help you review the options, consider the pros and cons of this course of action, and decide whether selecting a SIPP is a decision you should take.
The investment growth within the fund is currently free from all UK Income Tax and Capital Gains Taxes.
The value of a SIPP can fall as well as rise. You may get back less than the amount initially invested.
The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.