Self Invested Pensions

Self Invested Personal Pensions (SIPPs) give those planning for retirement greater control over their pension fund investments. A SIPP offers the widest range of pension investments including Cash, Equities (both UK and foreign), Gilts, Unit Trusts, OEICS, Hedge Funds, Investment Trusts, Real Estate Investment Trusts, Commercial Property and Land, Traded Endowment Plans and Options. 

The plan holder can control the investments deciding what to buy and when to buy or sell.  This product is ideal for experienced investors with larger funds or those wishing to use their pension funds to fund commercial property purchase.

SIPP’s can borrow half of its value to fund a commercial property purchase. Therefore a £200,000 fund will be able to buy a property worth £300,000 less all the costs associated with the purchase.

The property can be leased on commercial terms to a business that you own or to a third party.  This is very tax-efficient because the rent comes out of the business as a business expense before calculation of tax and is received into the SIPP as tax-free investment income.

A number of SIPP providers facilitate seamless transition to Unsecured Pension (USP), Phased Retirement and Altenative Secure Pension, so that you can take tax free cash and income without having to buy an annuity or cash in the fund.

What options do you have when you retire?