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Pension Advice in London

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If you live in or around London and you are looking for an Independent Financial Adviser then we recommend a national firm of retirement specialists, Retirement Solutions

They have over 20 advisers nationwide and as their name suggest specialise in retirement planning and pension solutions. Meetings can be held in the comfort of your own home.

You can call then direct on 0800 043 0725

Planning for Retirement – Your Options

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When you get to the age of 50 (or 55 from 6 April 2010) you can take benefits from your SIPP. Traditionally, you would take 25% of the value of the fund and use the remaining 75% to purchase a pension annuity. Pension annuities, once purchased, mean you lose access to your pension fund, they then provide an income for the rest of your life.

Unsecured Pension (USP)

An Unsecured Pension (USP), often known as drawdown, provides you with an income and still leaves you with access to your pension. The funds remain invested, so you’re still in control of your investments BUT there is a risk that if the income being taken is combined with poor investment performance then the fund will decline and so will the income you can draw from it.

The maximum income that can be taken is 120% of the equivalent pension annuity, there is no minimum income requirement so it can be set at zero. On your death it can be used to fund an income for your dependents or paid out as a lump sum (less a 25% tax charge) to a nominated beneficiary. A USP can be used up to the age of 75 when you either have to buy a pension annuity or move into an Alternatively Secured Pension (ASP).

Alternatively Secured Pension (ASP)

ASP does not pay out tax free cash. The income has to be between 55-90% of Government Actuary Department limits (so, unlike USP, it cannot be set at zero). If someone dies in ASP and they have dependents then the fund must be used to provide a survivors pension which is subject to income tax. If a member has no dependants then the remaining fund can be paid to a nominated charity, tax free.

Get independent financial advice, call 0800 043 0725 or visit our website

Using Property as a “pension contribution”

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Case study of using property as a pension contribution

As well as making a cash contribution, it is possible to transfer property into a SIPP and, subject to HM Revenue and Customs rules, receive tax relief on the full capital value.

Individual contribution
Rachel owns her own art studio worth £100,000.   During the year in question, she makes a pension contribution by transferring ownership of the property into her own SIPP.   Because her earnings for the same year are in excess of £100,000, she is eligible to receive tax relief on the whole capital value at her highest marginal rate.

Joint contribution
Michael and his business partner Mark jointly own a dental surgery worth £120,000. Both Michael and Mark will earn £60,000 in the current year so plan to “contribute” the property to their SIPPs in equal proportions. Each SIPP will own a 50% (or £60,000) share in the property. Michael and Mark will receive tax relief based on a contribution of £60,000.

Part contribution
Lynne owns a hairdressing salon worth £160,000. In the year in question she will earn £50,000. She decides to “contribute” a £50,000 share in her property to her SIPP.
In subsequent years Lynne plans to transfer further shares in her property until it is fully owned within her SIPP.


1. There are no limits on the level of contributions that may be paid to a SIPP but there are limits on the tax relief you can receive. UK residents under the age of 75 can contribute up to 100% of earnings and receive tax relief at their highest marginal rate.   This limit is applied to all contributions made to all schemes and is also subject to the annual allowance.
2. It is possible to transfer other types of “property” as in-specie contributions into a SIPP such as stocks and shares.
3. Employer contributions, whether in cash or in-specie are always treated as gross receipts by the SIPP i.e. no tax relief is reclaimed by us.

For help and advice on using property as a pension contribution call 0800 043 0725