SIPP pension has both irresistible advantages and of course undeniable disadvantages, like any other scheme there is. And so, here are some helpful tips you could follow when dealing with SIPPs:
First it can be opened for as low as £5,000, but it’s not advisable for little sums. So it is not a good idea for those who are mid way their career. Instead it is advisable if you are still young and just at the start of your own career, for along the way, large amounts may still be put in.
Next is that it’s a personal pension that you should administer on your own. So when dealing with investment strategy, it should all be your duty. Don’t have someone deal with it for you, that’ll just cost you more.
Third you should know that it costs higher compared to stakeholder pension, and even more with money purchase company scheme.
Another is that you should be very careful with the investments you put into it. It is a long term investment, so be careful. Because if your not, you might eliminate your entire pension with one inappropriate investment.
Lastly, remember that you’re still deemed to have annuity when you reach 75.