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The Pension Drawdown Company specialises
in providing advice on all aspects of pension
drawdown and investments

 
 
01 August 2010

How Safe Is Your Pension

Defined Benefit, or Final Salary Schemes, in the UK have a collective deficit of £253 billion as at the end of March. This is reported by the government sp…

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Independent Financial Adviser Logo The Personal Finance Society

Self Invested Personal Pensions (SIPPs)

It is possible to set up a Personal Pension plan using a Self Invested Pension Plan (SIPP).

This is a form of personal pension but with wider investment options. In addition to insured funds, unit trusts and investment trusts they can also include commercial property and direct holding of stocks and shares. It is also possible for the pension fund to borrow in order to facilitate, for example, a property purchase.

The same Contribution Limits and Lifetime Allowances apply to SIPPs as to Personal Pensions.

The following should however be noted when considering use of the self-invested facility:

  • SIPPs are not currently subject to regulation by the Financial Authorities. As a result, those purchased from sources other than Life Insurance Companies may not provide key features documents, illustrations of potential future benefits or offer “cancellation rights”.
  • Only “Insured” investments held within a SIPP are covered by the Financial Services Compensation Scheme. This Scheme affords a degree of protection in the event of insolvency of a Life Office.

 

I have known Jonathan Walker for very many years and have a great admiration for the effort and diligence he applies to any work he undertakes ... click here for more

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