All The SIPPs Advice You Will Ever Need

Independant SIPPs Advice

SIPPs pension schemes can be complicated, although they look fairly straightforward on paper. By setting up a SIPPs scheme, you are committing yourself to managing your own funds and being entirely responsible for the progress and success of your pension fund. This is a big step, and one that should only be taken after consulting an independent pensions adviser. Independent advisers are regulated by the Financial Services Authority, and have wide ranging market and technical knowledge of the pensions market. This means that they are ideally placed to look at your circumstances and recommend the products that are right for you. Contact an independent pensions adviser to make an appointment to discuss your requirements.

What Can A SIPPs Pension Do For Me?

A SIPPs pension can provide you with the flexibility to manage your own scheme. As of April 6 2006 , not only will you be able to invest cash in your SIPPs pension, but you will also be able to hold property in your SIPPs fund. You will get tax relief up to a certain level of funds, and charges for SIPPs pensions are generally less than those for company pension plans, with often significantly better fund performance. Previously, charges to set up and administer a SIPPs pension were so high that only the very wealthy could afford to take part in the scheme, but the rules have changed, so that these schemes are now open to anyone, with set-up fees starting at around £300 and annual charges at around £500.

Why Do I Need Pension Flexibility?

Most company schemes have very generous benefits, but are restricted to investment in perhaps 20 or 30 funds. A SIPPs pension can be invested in any fund of your choice, so if you like high risk, you can choose volatile funds, or spread your risk across all types of market investments. Once you can hold property in your SIPPs pension fund, your choices will widen as you can get a limited mortgage through your pension fund, buy property with it, and invest rental income in it. Carefully managed, a SIPPs pension could fund a comfortable retirement.

What Are The Drawbacks Of A SIPPs Pension?

The obvious problem with a pension of this type is that its success is entirely down to the way you manage it, and there's no safety blanket if your investment fund reduces, or you suffer through a downturn in the property market. You need to be aware of all the risks involved in managing your own pension and keep a close eye on the general market as well as your specific investments, so that you know when to change your investments.