What is SIPP pension? Well, with it you are able to arrange investments that are either already your own or not into your personal pension pot. SIPP, by the way stands for self invested personal pension.
Under this kind of scheme you could have more kinds of investments, like commercial properties and shares, which are of course a lot when compared to the things offered by a normal personal pension.
You could also have day to day control on your investment, which you could change from cash to shares, and shares to cash.
And even having unsecured pension is also possible with this one. Also known as income drawdown and income withdrawal, it allows you to have lump sum free from tax charge from your fund while it is stayed invested even after retirement.
SIPPs allow you to put into your pension things like:
- Deposit accounts with financial organizations like building societies and banks
- Direct property investment
- Government securities, known as gilts
- Insurance company funds
- Investment trusts
- National savings products
- Particular stocks and shares, which are quoted on a recognized UK and/or overseas stock
- Traded endowment policies
- Unit trusts.
SIPP Pensions are very flexible pension schemes