Sunday, 2 September 2012

Seeking a new pension? Try a SIPPS

By Kurt Hollabaugh


Looking for a new pension? Try a SIPPS

There are so many different options out there for people looking to invest in their future, but there aren't that many schemes that give you the freedom of a Self Invested Personal Pension or SIPP. Pensions of all kinds have their benefits, of course, but SIPPs are getting more and more popular for one simple reason; their flexibility. They can be opened by anyone, even children, can be invested in at any time and will leave investors happy that they're making the right choice.

Your money put to work

Many investors will be pleased to know that SIPPs are protected from both Capital Gains and Income Tax in the UK, and that you're also entitled to take out up to 25% of the total amount the moment you choose to retire as a lump sum, as long as you're over the age of 55. Again, this is tax free, so it's the perfect way to give yourself a much needed financial boost at a time when you could really do with it. After all, don't you deserve a little money to splash out on something when you're finally done with work?

The flexible nature of SIPPs comes from the fact that you're able to bring in many different elements to construct your new pension. Everything from bonds, equity, property and many other options are allowed, as well as good old-fashioned cash, and they will all work to help provide for a comfortable future. You'll also want to investigate the tax relief that's open to you as well as claim refunds when you complete your tax returns; your retirement fund will be stronger than ever.

A few simple questions

Opening a SIPP is relatively easy; just first decide how you're going to invest (either with a lump sum or via monthly payments) and choose the funds you're going to hold. It's best to seek professional advice before making your final decision and they'll also be able to advise you on whether your current investments can be transferred over should you want to do so. Once you're up and running, you'll be able to keep an eye on how it's performing by simply asking your independent financial adviser.

So, what advantages does investing in a SIPP pension give you over any other product? They're a good way to get started in the world of pensions, give you many options to choose from and you can open a SIPPS for someone else if you want to. You can manage them easily and they're lightly taxed, so will provide well for you in future - so investigate SIPPs and see if they're right for you.




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