PLANNING
Self Invested Personal
Pensions (SIPPs)
A Self-Invested Personal Pension (SIPP) is a pension wrapper that holds
investments until you retire and start to draw an income.
The main difference between a SIPP and a standard
personal pension is that with this product, you have
more flexibility with the investments you can choose.
With standard personal pension schemes, your
investments are managed for you within the pooled
fund you have chosen.
SIPPs are a form of personal pension that give you the
freedom to choose and manage your own investments.
Another option is to pay an authorised investment
manager to make the decisions for you.
SIPPs are designed for people who want to manage
their own portfolio by dealing with, and switching,
their investments when they want to. They can have
higher charges than other personal or stakeholder
pensions so for these reasons, SIPPs tend to be more
suitable for large funds and for people who are
experienced in investing.
Key points
A SIPP lets you invest your own
pension yourself
It has attractive tax advantages and you
can keep your money in it through
retirement – withdrawing money when you
need it (this is called drawdown)
It is suitable for people who want to pick
and manage their own investments
D.I.Y.
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