Do you know what SIPP pension is? SIPP stands for Self Invested Personal Pension. It is a form of pension that will permit you to put together investments (either you already own or not) into your own personal pension pot. With it you can do things like:
- Have more kinds of investment, such as commercial property and shares, compared to what a normal personal pension offers
- Have unsecured pension, or income drawdown, which allows you to obtain tax-free lump sum from your fund while it stays invested
This type of scheme is available to both companies and individuals. For companies it is referred as Group SIPPs.
But be warned, not because it has advantages doesn’t mean it has no disadvantages. So here are two helpful tips on disadvantages:
- SIPPs are not a good idea for those with little sums. You can start for as low as £5,000 to open up SIPP. That’s good if your still young and just starting your own career, but not if your midway your career
- It is a personal pension that you should control by yourself, especially with regards to your investment strategies. Hiring someone to manage it will only cost you more.