A Self-Invested Personal Pension lets you take an active part in investing your funds for your future
Learn about the different methods of drawdown: annuities, lump sums and FLUMPs
Less than a third of the self-employed contribute to a pension; could a SIPP be right for you?
SIPPs share the significant tax benefits common to other private pensions
Making sure you have a decent income when you retire takes planning. So, what do SIPPs offer?
A SIPP stands for Self-Invested Personal Pension. They enjoy generous tax benefits, give you access to a wide range of investments when compared to traditional pensions, and any gains made are free from capital gains and income tax.
Yet this pension option may not suit everyone. Why?
Because a SIPP puts you in the driving seat. A SIPP is a pension ‘wrapper’ which allows you to hold investments and decide what to buy and sell. The investment decisions you make are your own and, as with other investments, the value of your funds can fall as well as rise.
Since their launch in 1989, over 1.7 million people in the UK have opened a SIPP. If you want to take control of your private pension and actively invest, a SIPP could be a good fit.
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Before opening an account, please read our Terms and Conditions
The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.
EQi does not provide investment advice. If you are in any doubt as to the risk or suitability of an investment or product you should seek advice from an independent financial adviser.
The extent and value of any SIPP tax advantages or benefits will vary according to the individual's circumstances. The levels and bases of taxation may also change. If your options change regarding an employer’s pension scheme you may wish to review your financial situation. Once in a pension your money is only accessible, in general, from age 55.
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At their most basic, pensions break down into state, company and private. Here’s a brief look at what they offer.
SIPPs share the significant tax benefits common to other private pensions.
The government automatically pays an extra 20% into your pension (the basic rate of tax). If you pay a higher rate of tax, you may be able to claim back up to 46% via a Self-Assessment tax return.
Plus, the money invested in your pension grows free of capital gains tax and income tax.
Typically, investors have little or no choice in how their contributions are invested. A SIPP is different, as you are the manager of your own pension fund.
A?SIPP puts you in the driving seat, you decide which assets to buy, sell and hold.
A SIPP gives you access to a wider range of investment options, which means you can diversify your portfolio and seek returns which can boost your retirement pot.
To help you select funds for your retirement pot which meet your investment goals and your attitude to risk,?we’ve partnered with Square Mile, the independent investment research business.
*Some funds may be available in certain pensions
The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.
EQi does not provide investment advice. If you are in any doubt as to the risk or suitability of an investment or product you should seek advice from an independent financial adviser.
The extent and value of any SIPP tax advantages or benefits will vary according to the individual's circumstances. The levels and bases of taxation may also change. If your options change regarding an employer’s pension scheme you may wish to review your financial situation. Once in a pension your money is only accessible, in general, from age 55.
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When to review your pension