deVere Group - SIPPS


sipps plan guide  

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 contact us.