Advanced Pensions & Simplification

In recent years the pensions industry has become more advanced and in terms of the flexibility of investments available and the structure of the actual pension arrangements.

It is an area of constant change and you should consult your adviser regularly to make preparations for a secure and enjoyable retirement.

Self-invested personal pensions (SIPP’s)

A Self Invested Personal Pension Scheme (SIPP) plan is a tax-efficient wrapper within which a wide range of investments can be held. A new SIPP must appoint professional trustee (the pensioneer trustee), usually the recognised product provider. SIPPs have the same tax benefits and regulations as conventional personal pension plans but you and or your advisers have control over the investment choice - each SIPP is unique to the individual. Otherwise, it operates in the same way as a conventional personal pension in respect of contributions and eligibility, for Inland Revenue purposes.

The range of permitted investments is extensive and includes more conventional investments such as deposits, unit trusts and stocks and shares and also more unusual assets such as commercial property or loans. The more complex nature of a SIPP means that it is not suitable for all investors. Often, the benefits of ‘self investment’ are only advantageous to people with very large funds, and/or investors with some level of sophistication when it come to investment decisions. Often, there are additional charges for arranging and dealing within a SIPP, and these charges would erode smaller funds quickly.

Your adviser will be able to provide more details and make a recommendation based on your own circumstances.

Pensions Simplification - A-day

In April 2006 the pensions industry underwent some fundamental changes. These changes were generally for the better and allow increased flexibility for your retirement.

However there are circumstances where you will benefit by acting now to preserve certain benefits. Why not contact your adviser today and see how you can plan for your retirement most effectively?

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