SELF INVESTED PERSONAL PENSION (SIPP)
The usual method of saving for retirement is through insurance companies that offer a range of long term investment funds. However for those that prefer a more 'hands on approach' a self invested personal pension may be the appropriate vehicle.
A SIPP is just the tax wrapper around individuals' pensions funds that permits full control of their investments, with our help of course!
Typical SIPP investments are bank accounts, gilts, shares (listed and private), commercial property syndicates, discretionary portfolios - lots of choice!
In short, the options for SIPP investors are wide and allow very proactive retirement planning.
Since the 1990's we have advised many of our director clients to purchase their commercial property through a SIPP and many are now receiving an excellent income in retirement from their pension.
Two of the most used features of SIPPs are:
1. Ability to borrow up to 50% of total fund value to increase opportunities to purchase commercial property.
2. Joint purchases of commercial property with a company made up of other individuals.
From 6 April 2008, Protected Rights pension funds (funds reclaimed from National Insurance contributions) were able to be transferred into SIPPs and this allows for even more flexibility.