Self-Invested Personal Pensions (also known as ‘SIPPs’) are being used by a rising number of private investors keen to take control of their retirement planning.

First introduced in 1989, SIPPs have evolved into the favoured investment vehicle for individuals seeking more control and flexibility in their retirement planning.

SIPPs are a form of pension available to all investors who choose to invest into a private pension, but they have one distinctive element: they allow the investor to self-invest, or to take control of the pension (which is why sometimes they are referred to as ‘self-controlled’ pensions).

A Self-Invested Personal Pension could be right for you if you are looking to build up a pension fund in a tax-efficient way and are prepared to commit to having your money tied up, normally until at least age 55. You need to understand that the value of your investments can fall as well as rise.

Right for you if:
• You want to build your pension pot tax-efficiently
• You’re comfortable with the risk involved
• You’re prepared to have the funds tied up for a long time – normally until you’re at least 55

Wrong for you if:
• You might want access to the money before you retire
• You’d be nervous when faced with market volatility
• You still have to make previous years’ contributions

If you would like to discuss your pension and whether a SIPP might be the best way forward for you, get in touch to organise a meeting with one of our advisers.