In the current age of austerity and financial uncertainty in the UK, you’d be forgiven for perhaps not considering your future as much as you should; it is easy to be bogged down in the here-and-now and the best ways to make your current lifestyle as financially comfortable as possible, but really your later years in life are just as important as the present.
Whether you’re newly employed or have been working for some time, having a secure pension is something that will not only help in giving you a worry-free retirement but can be something that you can control if you go about building one in the right way – namely a SIPP.
What are SIPPs and Why Choose One?
SIPPs or ‘Self-Invested Personal Pensions’ are an increasingly popular form of pension that can ultimately give you more control over it and how it is built.
Where a typical company pension plan or scheme may be dictated by your workplace or where you are investing in it, a SIPP not only has the same appealing tax breaks as pensions but you can decide how and when you invest in it. On top of this, you can consolidate any existing pensions you’ve accumulated into one SIPP – which as an added benefit cuts out a lot of hassle and administration.
When you turn 55 they can be withdrawn subject to some exceptions and can give you a 25% tax-free lump sum or a larger return if you’re a higher rate taxpayer. Also if you have commercial property or other assets there is potential to put these into your retirement savings at a time that suits you.
Where Can I Get One?
SIPPs can be provided by from a wide variety of firms like jameshay.co.uk and not only can they provide further information on SIPPs but will offer you professional advice regarding what choices can suit your circumstances the best.
Like a lot of investments though – particularly important ones such as your pension – there are things that you need to consider:
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How much help do you think you will need with your SIPP – will it undermine the whole point of the flexibility?
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How much will you have to spend in terms of fees (both initial and annual) and how much will the provider expect from the value of your investments?
These costs and expectations aside, a SIPP is possibly still the most flexible choice you can have in terms of a pension plan in certain circumstances, and if you’re anxious about your future and want to invest more and quicker you need to act now to safeguard your retirement.