What is a SIPP ?
SIPP (Self Invested Personal Pension) SIPP stands for Self Invested Personal Pension. A SIPP is a personal pension scheme which gives you the freedom to choose and manage your own investments. SIPP始s act as a pension vehicle for people who desire more control over their funds, allowing them to decide which investments are appropriate to them specifically- rather than their investments being managed within a pooled fund chosen by a third party.
A SIPP works the same way as a conventional personal pension scheme. It始s a highly tax efficient savings plan and you benefit from tax relief on personal contributions. With many pension schemes underperforming in recent years, increasingly, people are taking a more proactive approach to retirement planning. By structuring some or all of your pension funds under a SIPP, you get control, diversification and flexibility. Astute investors have flocked to open SIPP始s. They have grown from being relatively niche- the preserve of the wealthy- to becoming a mainstream way to save for retirement for those who are happy to make there own investment decisions. It is now estimated that over half a million people have a SIPP. There are two ways you can start a SIPP. 1. New Contributions (such as monthly payments and one off lump sums) which attract tax relief at up to 40%. 2. Transfers from other pensions allow investors to move away from under performing pension arrangements which had limited investment options and poor customer service.
Future Retirement Planning do not offer any financial advice and information is published solely to help clients make their own investment decisions. It does not constitute a recommendation in any way whatsoever. Should you have any doubt as to the suitability of an investment for your circumstances you should contact your Independent Financial Advisor.
Future Retirement Planning Ltd
What is a SIPP ? A SIPP is a structured bank account holding your pension funds. It is then used as a wrapper to invest in SIPP approved products some of which are shown below.
Structured Products Overseas Property
Futures & Options
Commercial Property
SIPP Bank Account
Land Purchase
Life Settlement
Insurance Funds Shares
Pensions are a tool to help build for retirement, they provide many benefits to help create financial security. These include: - Tax Efficiency - Death Benefits - Retirement Income and FSA regulated structure. A SIPP incorporates all the benefits of a standard pension with various other key factors. These include: Investment Choice - Investing your pension where you want is the defining factor to SIPP始s. This allows you to take direct control of your financial future and still allows you to invest in the same funds as with a standard pension. Charges - A concise list of fees allows complete transparency over your money. Standard pension companies can operate a complex fee structure making understanding costs very difficult, often potential growth can be eroded through these fees and costs. Overall SIPP始S give greater control over your retirement planning. With a single monthly statement you can see the progress of your investments and evaluate how your pension will be nurtured for the future.
Future Retirement Planning do not offer any financial advice and information is published solely to help clients make their own investment decisions. It does not constitute a recommendation in any way whatsoever. Should you have any doubt as to the suitability of an investment for your circumstances you should contact your Independent Financial Advisor.
Future Retirement Planning Ltd
Finding your Funds There are a variety of different types of funds that can be used to set up a SIPP. Some you may not even know you have. The six main types of funds you may have are: 1. 2. 3. 4. 5. 6.
Personal Pension. Group Personal Pension. Company Pension. Single Premium/Monthly Premium Pension (Pension you are currently paying into). S.E.R.Pʼs - State Second Pension- Have you opted out? Additional Voluntary Contribution (AVCʼs) and Final Salary Additional Voluntary Contribution (FSAVCʼs).
Personal Pension
You may have multiple policies or funds you werenʼt even aware of.
Single / Monthly Premium
Group Personal Pension
SIPP
S.E.R.Pʼs
AVCʼs & FSAVCʼs
Any pension can be traced no matter how long ago it was last active.
Company Pension
To gain access to these funds we will need the policy numbers for all of your pension funds. - Check statements you have received over the years. - If you haven't received a statement or if you canʼt find them it is possible to trace the pension back through your previous employer(s). - If you do not have your policy numbers then you can contact the pension company direct and request an up to date balance. - To check if you have any funds in protected rights (SERPS) then contact - 08459 150 150 - If you canʼt find your pension information then call the FREE Pension Tracing Service, it is a no obligation phone call and they will help track your pensions Call - 0845 600 2537 Once you have collected all of this information you can then make an educated decision on planning your retirement saving strategy and choose the option that best suits you. Future Retirement Planning do not offer any financial advice and information is published solely to help clients make their own investment decisions. It does not constitute a recommendation in any way whatsoever. Should you have any doubt as to the suitability of an investment for your circumstances you should contact your Independent Financial Advisor.
Future Retirement Planning Ltd
What is SERPS? The State Earnings Related Pension Scheme (SERPS) was set up in the UK in 1978 to provide a second government-run pension fund known as their SERPS. It was paid for through an individuals earnings and National Insurance contributions during their working life. Anyone who was earning more than £75 per week and had not “contracted out” would have been building up an additional pension. The more you earned over your working life, the more SERPS you got, to an upper limit. This upper limit is a maximum of 20% of your average annual earnings. In 2002 SERPS changed its name to the State Second Pension. Did you Contract Out? “Contracted out” means that you agreed to transfer your SERPS fund to an insurance company to be held as ʻprotected rightsʼ. These funds would have been managed by the insurance company and could be accessed at retirement. In the 1980ʼs and 90ʼs the government offered incentives to people to ʻcontract outʼ of SERPS and place the money with an insurance company. At the time contracting out was popular as insurance funds were performing well and prospects for protected rights money was good. However, with struggling stock markets and insurance companies managed funds facing disrepute, many individuals are choosing other avenues to channel their pension money and protected rights funds.
What can you do with your Protected Rights? Since October 2008 the government allowed people to transfer their protected rights pension fund into a Self Invested Personal Pension (SIPP) Standard Life estimates that there is up to £100 billion in protected rights, SOME OF THIS COULD BE YOURS. SIPPʼS have a range of benefits which can be explained by our partner Independent Financial Advisors. These include the freedom to choose how and where your funds are invested and the opportunity to take control of and manage your pension(s).
To find out how much you have in SERPʼS call the number below
Itʼs FREE, there is no obligation, all you need is your National Insurance number. Why wait? Call today
08459 150 150 Future Retirement Planning do not offer any financial advice and information is published solely to help clients make their own investment decisions. It does not constitute a recommendation in any way whatsoever. Should you have any doubt as to the suitability of an investment for your circumstances you should contact your Independent Financial Advisor.
Future Retirement Planning Ltd