A Government approved personal pension known as a self-invested personal pension (“SIPP”) allows individuals to make their own range of investment decisions approved by the HMRC. This is a highly flexible, inexpensive, and straightforward way to invest pension funds when planning for retirement or your future. It allows full control over where your money goes and how it grows.
SIPPs give you the opportunity to take full responsibility for managing your own investment. The most appealing thing about this type of investment is that they allow you to invest in a wide range of assets, some include:
The alternative option is to set up a Small Self-Administered Scheme (SSAS) in order to provide retirement benefits usually in the name of a limited company for privately run businesses to benefit directors, senior or key staff and family members. Any contributions made to the SSAS will determine tax relief, often subject to conditions.
Both types of schemes mentioned above influence how your pension pot is invested. The main distinction is found in the names of the scheme. A Self-Invested Personal Pensions gives individuals control over their investments, whereas Small Self-Administered Scheme pensions are for company directors and controlled by all trustees of the scheme. Similarly, the entire pension pot belongs to the owner of the SIPP, where there are no individual pots in an SSAS. Rather, each share is defined by a percentage.
If you need help from our business solicitors about pension schemes, please do not hesitate to contact our office on 0116 247 0022 should you require a quote or any further information. Or complete our enquiry form and we will call you back by the end of the next working day.