As talk of more companies closing their final salary schemes to members starts to
take hold, it is worth deciding how to make your money work for you in retirement
and how you can accumulate a pension that will make you financially stable trough
your retirement years.
A Self Invested Personal Pension plan (SIPP) is one option open to individuals
who wish to consolidate their existing UK pension schemes and invest smarter for
their retirement. It allows you to have greater investment control over your pension
and is designed to produce an income or a tax free lump sum and income when you
chose to retire.
The range of investments that you are able to choose from inside a SIPP is more
varied than other pension plans, enabling the SIPP holder to invest in a wide range
of assets including stocks/shares and futures/options both home and overseas.
SIPPS are designed for investors who want maximum control and flexibility over their
pension. SIPP benefits include:
- flexibility on the choice of investments with a wide range of eligible investments.
- the ability to select your own fund manager or managers
- early retirement irrespective of whether you remain at work
- penalty free transfers
- staggered or phased retirement
- income drawdown - avoiding the requirement to purchase an annuity until 75
- significant tax advantages
- inheritance tax planning possibilities
- consolidation - you can transfer all existing pension entitlements into a SIPP,
including transfers from occupational pension schemes
Since the pension rules changed on 6th April 2006, individuals have been able to
contribute as much as £215,000 each tax year to their SIPP fund. As long as the
fund does not exceed the life time limit of £1.5 million, you are able to take full
advantage of your SIPP allowing you to relax in your retirement safe in the knowledge
that your finances are maintaining you.
SIPPS can be less risk than a company’s final salary scheme as many individuals
are currently finding out, as the transfer value’s put into your fund are controlled
by you. As a result this offers you greater freedom and flexibility, an early retirement
and significant tax advantages.
deVere Group is the world’s largest independent financial consultancy group and
deal with the financial needs of clients who have relocated abroad. We can help
you plan for all of your retirement needs and provide you with impartial advice
on how to remain financially independent through your retirement years.
If you would like more information on how we can help getting your UK pensions working
harder and smarter within a SIPP then please