Green Investing Today

SIPPS – a pension worth considering

There comes a time for all of us when we need to look toward the future and think about our retirement – and if you’re trying to decide the best type of pension for you, make sure you include SIPPS in your investigations.

The potential benefits of choosing a SIPPS

Ask people what they most want from their pensions and most people will reply that they would like flexibility and choice. If this sounds like you, then a SIPP pension could be perfect – with many more investment opportunities than other personal pensions, you can have more say in where your money goes. Even better news is that while you’re able to put yourself in the driving seat, you still get the same advantages from a tax point of view as you would with other kinds of personal pension plans.

SIPPS give you several options when it comes to drawing a retirement income which can also be very attractive to investors. You can secure an income via an annuity, draw an unsecured income directly from a SIPP investment sum, or, if preferred, choose a combination of these. When you retire, your SIPP pension will also enable you to take 25% of your accrued funds as a lump sum, totally tax free.

When it comes to investments, a SIPP will give you the chance to choose from a variety of different options, which could be commercial property, bonds, shares, trusts or any number of other choices. If you want to find out more about the type of investments that you can include in a SIPP pension, then it’s a good idea to talk to a financial adviser.

SIPPS and inheritance

Although it’s never nice to dwell on such morbid subjects, it’s nice to know that when the inevitable happens and you take your leave of this world, that your family will benefit in some way from your demise. With a SIPP pension, your main beneficiaries will receive whatever’s left from your pension as a tax free lump sum – although if you’ve already drawn up money from your SIPP, then that portion will be subject to tax.

When looking into various pension options, you may also have heard the term ‘pension wrapper’. A SIPP can act as a pension wrapper, by giving you the opportunity to manage all of your investments and any other pensions you may have in one easy package.

Ultimately, a SIPP pension is the best choice if you like to feel that you’re in control of your own destiny. However, as with any aspect of wealth management, you should always seek professional advice from an independent adviser before you sign on the dotted line – so if a SIPPS seems a good idea to you, why not get in touch with a financial adviser and find out more.

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