Self-Invested Personal Pension Schemes

Posted on: 08 Nov, 21

Welcome to our Guide to Self- Invested Personal Pension Schemes. Saving for your retirement is one of the longest and biggest financial commitments you will ever make. Imagine you are retiring today. Have you thought about how you are going to financially support yourself, and potentially your family too, with your current pension savings? If appropriate to your situation a Self-Invested Personal Pension (SIPP) could be an option to consider as part of your overall retirement planning.

A SIPP may be appropriate for you if you’re confident making your own investment decisions and managing your pension payments against the relevant allowances.

How Do I Know if a Sipp Is Right for Me?

A SIPP could be right for you if you are looking for a wider choice of investment options and have sufficient knowledge and experience of investing to make your own investment decisions or have a trusted adviser to help you make these decisions.

A SIPP provides a range and #exibility of investment options that make it one of the most flexible methods of saving for retirement. You can invest money into your SIPP up until you reach age 75, and start withdrawing money from it as early as age 55 (57 from 2028).

As with all defined contribution schemes, the amount that you will have available when you retire depends on the contributions that you, and any employers, have made and how your investments perform over time.

If appropriate, almost anyone under the age of 75 in the UK could open and make tax-relievable contributions into a SIPP. Parents can even open a Junior SIPP for their children. SIPPs are not suitable for every investor and other types of pensions may be more appropriate.

As with all pensions, SIPPs provide favourable tax treatment. Once in a SIPP wrapper, your savings will grow free from UK income tax and capital gains tax.

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