SEARCH, INDEX, UPDATES, CONTENTS, IDEAS, SELF INVESTED PERSONAL PENSION (SIPP)
Since 1995 it has been possible to obtain the tax benefits of a Personal Pension while still retaining investment control of your own pension fund through a SIPP. The restrictions on taking benefits still apply.
A SIPP has to be administered by professional trustees and the costs of administration have been, and in some cases still are quite significant. While it is generally true that you get what you pay for, and good investment advice is worth paying for, some people like to make their own decisions.
"Execution only" type SIPP schemes are now available. A list of SIPP providers is available at http://www.sipp-provider-group.org.uk.
Without making any recommendation of any individual SIPP provider, some of the lower cost internet based sites are http://www.sippdeal.co.uk and http://www.nothing-ventured.com.
One attraction of a SIPP for the self employed is the ability to buy business premises (from a third party and not from yourself) as an investment of the SIPP, with the help of a 75% mortgage on the property if required. Partners can combine their individual SIPPs to achieve this.
This is a complex area which should only be pursued after careful research and consideration, but for some people it can be an excellent arrangement.
See also NIC Summary, Retirement, Pension Contributions, Stakeholder Pensions, Statutory Money Purchase Illustrations.
Reminder - disclaimer applies. Please feedback your comments. This page was last modified 16 May 2003.