Self-invested personal pensions (Sipps)

These are a step on from standard personal pensions and give a wider investment choice, usually at a higher cost. For those wanting to pick and choose the funds in which their pension invests, a Sipp may be a suitable choice.

These benefit from the same tax relief as standard personal pensions, providing the investments are on HM Revenue & Custom's approved list. This includes life insurers, commercial property, unit and investment trusts, equities, cash deposits, and futures and options.

Dealing charges and management fees vary dramatically between providers, and can be hefty, making Sipps traditionally suited to high-net worth individuals.

As well as set-up charges of between £400 and £500, and annual charges of around the same sum, you face initial and annual charges for each investment made.

However, newer stakeholder-style contracts with lower charges are gradually being introduced,  giving Sipps wider appeal - although you can't invest in commercial property through these.

Sipps are available from independent financial advisers and stockbrokers, as well as from traditional pension providers.

Call 01732 881188 for more information

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Registered Address: 3 Station Road Borough Green Sevenoaks Kent TN15 8ER.
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