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As talk of more companies closing their final salary schemes to
members starts to take hold, it is worth deciding how to make your
money work for you in retirement and how you can accumulate a
pension that will make you financially stable trough your
retirement years.
A Self Invested Personal Pension plan (SIPP) is
one option open to individuals who wish to consolidate their
existing UK pension schemes and invest smarter for their
retirement. It allows you to have greater investment control over
your pension and is designed to produce an income or a tax free
lump sum and income when you chose to retire.
The range of investments that you are able to choose from inside
a SIPP is more varied than other pension plans, enabling the SIPP
holder to invest in a wide range of assets including stocks/shares
and futures/options both home and overseas.
SIPPS are designed for investors who want maximum control and
flexibility over their pension. SIPP benefits include:
- flexibility on the choice of investments with a wide range of
eligible investments.
- the ability to select your own fund manager or managers
- early retirement irrespective of whether you remain at
work
- penalty free transfers
- staggered or phased retirement
- income drawdown - avoiding the requirement to purchase an
annuity until 75
- significant tax advantages
- inheritance tax planning possibilities
- consolidation - you can transfer all existing pension
entitlements into a SIPP, including transfers from occupational
pension schemes
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Since the pension rules changed on 6th April 2006, individuals
have been able to contribute as much as £215,000 each tax
year to their SIPP fund. As long as the fund does not exceed the
life time limit of £1.5 million, you are able to take full
advantage of your SIPP allowing you to relax in your retirement
safe in the knowledge that your finances are maintaining you.
SIPPS can be less risk than a company's final salary scheme as
many individuals are currently finding out, as the transfer value's
put into your fund are controlled by you. As a result this offers
you greater freedom and flexibility, an early retirement and
significant tax advantages.
deVere Group is the world's largest independent financial
consultancy group and deal with the financial needs of clients who
have relocated abroad. We can help you plan for all of your
retirement needs and provide you with impartial advice on how to
remain financially independent through your retirement years.
If you would like more information on how we can help getting
your UK pensions working harder and smarter within a SIPP then
please contact us.
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