| | | Who are Sipps Pensions for
In simple terms, a self-invested personal pension puts the investor in control of their pension planning. Traditionally SIPPs have been the domain of the wealthy and as a general rule of thumb you had to have a pension fund with a value greater than £200,000 in order to make it worth your while. Whilst in the recent past prohibitive high charges have made SIPPs less accessible, increased competition in the marketplace has seen a sharp drop in costs (both initial and on going). In its simplest form, a SIPP allows an investor much greater access to the investments markets. Whilst SIPPs can potentially be extremely sophisticated and complicated and can provide excellent tax planning solutions, there is no reason why they cannot be used simply to provide an investor with more control over their pension planning by providing a wider range of investment options. In the current difficult financial markets it is essential to have the maximum amount of flexibility when planning for retirement. Unlike "normal" Personal Pension Schemes you will all be able to borrow against the assets of your SIPP Fund in order to invest more aggressively or simply to leverage your buying power and returns on investment. There are some fairly strict rules concerning borrowing money against your SIPP Pension, for example you can only finance 50% of the value of any residential property that you purchase. Some of the disadvantages are less obvious but should still be considered and discussed with a Qualified Advisor before committing yourselves to a SIPP.
If you are living overseas permanently or are planning to in the near future then a QROPS transfer might be something worth considering. |
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