Self-Invested Personal Pension (SIPP)

Self-Invested Personal Pension (SIPP)

Self-Invested Personal Pension or SIPP’s were first introduced in 1989 to give pensioners more flexibility in their pension planning. Since then they are now becoming the preferred pension wrapper for UK residents that don’t have defined benefit schemes.

As more and more providers have joined the market annual charges have become more affordable with fees for some SIPP’s starting from £295 a year. This has made them a great option to consider for your pension wrapper.

A SIPP is essentially a designated bank account that holds your pension funds that are managed by a SIPP Trustee. The SIPP Trustee is responsible for ensuring you follow all of the many pension rules set out by the government and that the pension is only used per these rules. They are essentially the gatekeeper to your pension fund.

The account where the funds are held will be with a major UK bank and again ringfenced for you alone, limiting the institutional risk of the bank.

The SIPP Trustee does not make any investment decisions and cannot manage the investment part of the pension for you. They ensure you follow all of the rules.

The investment management of the pension is up to you. Some clients choose to self-manage, and in this case, you will need to find a SIPP provider that allows you to buy and sell investments on their platforms like Hargreaves Lansdowne or AJ Bell.

Most of our clients appoint a Discretionary Fund Manager to manage the investment of the funds for you. They have access to all of the latest market insights and manage the money 365 days a year.

For more information on our portfolio partners service, see this link.

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