A SIPP is a special type of Personal pension which provides you with greater
flexibility and choice. SIPPs are ideal for those who want to make their
own investment decisions.
Most personal pensions are provided by insurance companies and they generally
have limited flexibility and offer a limited range of investment options.
A Self Invested Personal Pension separates the legal structure and administration
from the investment manager. This means that you can make investment decisions
yourself and have a wider range of investment options. Your investments
can be managed by a professional investment manager or even by you.
The advantages of SIPPs
- SIPPs provide you with flexibility, control of your investments
and greater choice of options
- You can make investment decisions yourself or use a professional
investment manager
- Investment options include
- Equities and bonds
- Collective investments e.g. unit trusts and OEICs
- Commercial property
- Investment returns are free of tax - except dividends on equities
- Many Pension Drawdown policies are arranged through a SIPP
- Competitive charges and fees
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SIPP Structure
By separating the administrative functions from the investment functions
SIPP provide a totally transparent and flexible pension plan.
The diagram below shows how the different functions are split.
