Self Invested Pension
If you are looking for investment freedom in a self invested pension then a Self Invested Personal Pension may be for you.
A SIPP hands you control over your pension planning without the restrictions of a managed pension fund.
It is really a DIY pension where you have control over what you invest in.
It allows you to manage the assets in your pension fund, with a diverse mix of investment options, including access to global equity markets, bonds, exchange traded funds and commodities.
In a SIPP, as you take responsibility for the investment decisions it is important that you are comfortable with taking these decisions and fully aware of the risk associated with particular investments before making a decision to invest.
Once you reach age 55 you can then access your pension pot and have flexibility on how you take the benefits.
Benefits of a SIPP include:
- You can invest up to £40,000 pa with tax relief
- Manage your SIPP online with many providers with some offering mobile apps so you can keep up to date on the go
- Save from as little as £25 pm
- Access a wide range of investment options
- A range of charging structures are available depending on your requirements
- Helpful tools and expert advice and opinion to help you with your decision making
What are the tax benefits of a SIPP?
When you invest in a SIPP your investments will grow without capital gains or income tax. Secondly when you contribute your contributions will recieve government tax relief. How much relief depends on your personal tax position.
So if you are a basic rate tax payer any personal contribution made will receive relief at 20% (based on current pension and tax rules). So if you pay £800 into a SIPP the taxman will put another £200 to make it up to £1,000. If you are not a tax payer you can make contributions up to £3,600 pa including tax relief, so by putting in £2,880 the taxman would add a further £720 into the SIPP.
If you are a higher rate tax payer you can claim additional tax relief via your HMRC tax assessment. As an example a higher rate tax payer putting in £8,000 into a SIPP would get £2,000 added to the SIPP and in additional a further £2,000 rebate from the taxman, so for a total contribution of £10,000 the government is effectively putting £4,000 back into your pension, with a cost to you of £6,000.
For more information on SIPPS, Hargreaves Lansdown have published a useful FREE guide to SIPPS which you can access here.
Self Invested Pension
Take Control of your pension!
A self-invested personal pension (SIPP) is different to a traditional pension. Instead of limiting your investment options, a SIPP opens the doors, giving you more choice in how you invest your money. Like other pensions, the government will still give you up to 46% tax relief on the amount you pay in. Once your money is in a SIPP, you won’t have to pay tax on any gains or income your investments make.- Low cost award winning pension – Fixed fee plan keeps costs down over long term
- Investment choice – Choose from more than 40,000 investments
- Ready made funds and investment ideas – Making it easy to select investments
- Expertise – Research, ideas, and updates to help you with your investment decisions
Compare Self Invested Pension Providers
Ready-made funds, experts’ fund shortlist, over 5,000 other funds, shares and other exchange traded investments
Aviva Charge up to 0.40% of the value of your fund or cash. Fund Manager Charge will depend on the funds chosen. Aviva Share Charge up to 0.4% of their value. Trading charge for shares and ETIs
A low cost award-winning SIPP that gives you a choice of over 40,000 investments; Selected funds; Ready made portfolios.
Sipp fee: £5.99 pm – assets up to £50,000, £12.99 pm – assets over £50,000
Offering commission-free DIY investing from a choice of 700 ETF’s, or low-cost professionally managed income or growth portfolios built for you
Sipp fee: 0.15% for your InvestEngine SIPP, capped at £200 per year, plus the costs of your investments — commission‑free for our DIY portfolios, or add a Managed portfolio for 0.25% a year
Build your investment portfolio from over 12,500 investments, from stocks and shares, funds, ETFs and more
Sipp fee: Low platform fee is a maximum 0.30%
A wide choice of investments, including over 2,000 funds, shares from 25 markets, ETFs, investment trusts and more
£0 – £250k: 0.25%
£250k – £500km: 0.1%
Over £500k: FREE
Low-cost personal pension from award-winning provider Bestinvest. Choose from thousands of investments, get inspiration from guides and articles or opt for a Ready-made Portfolio
Sipp fee: up to 0.4% pa
Over 11,000 investments to choose from including funds, investment trusts, ETFs, company shares, bonds and more.
£0 – £250k: 0.45%
£250k – £1m: 0.25%
£1m – £2m: 0.10%
Over £2m: FREE
Thousands of funds to choose from; Select 50 – Browse a list of expert picks. Pathfinder – Risk profiled fund options. Investment Finder – Search 1000s of investment ideas.
Less than £25,000: 0.35% if you have a regular savings plan or £90 (£7.50 a month) if you don’t
£25,000 or more but less than £250,000: 0.35%
£250,000 or more but less than £1 million: 0.20% – and you will automatically qualify for Fidelity’s Wealth Management Service benefits
£1 million+: 0.20% a year for the first £1 million and no service fee for investments over £1 million
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