Self Invested Personal Pension Help / FAQ’s

Here we answer the most commonly asked questions regarding a Self Invested Personal Pension / SIPP

What exactly is a SIPP?
SIPP stands for Self Invested Personal Pension and it is a stand alone UK personal pension plan. It offers tax benefits, more flexibility, more control and is a great way to build up a pension fund for your retirement.

Who can open a Self Invested Personal Pension?
Anyone resident within the UK who is between 18 and 75 years old. You can also open a SIPP on behalf of a child if they are under 18 years old.

Can I really compare pension plans through your website?
Absolutely yes. We can compare pension funds from the whole of the UK and not just from a select few providers.
After filling in our online form, one of our friendly qualified advisors will search the market looking for the most suitable pensions
Please click the following link to compare:  Compare SIPP pensions

Why should I use your website to help choose my pension?
Pensions are a serious investment which should not be taken lightly.
We have a small team of FSA regulated fully qualified independent financial advisors on standby should you require any advice.
Because we are an independent website, we can compare all the different SIPP pension plans from the whole of the UK market.

Who can contribute into a SIPP?
Anyone can contribute into a SIPP and can even contribute into a third party pension such as grandparents paying into their grandchild’s plan.

What investments are available with a Self Invested Personal Pension?
You can pay the following investments into a SIP:
 

Can I transfer an existing pension into my Self Invested Personal Pension?
Yes you can transfer any previous occupation or existing personal pension plan into a SIPP apart from a Protected Rights Pension.

Can I have other Pension Plans along side a SIPP?
Yes you can run other employment or personal pension schemes along side your SIPP.

Are Self Invested Personal Pension Plans really a good investment?
With all investments, their value can go down as well as up. With a SIPP, you cannot access the funds until you take the benefits which means that no one else can either.
This means that should you find yourself out of work and having to claim benefits, then your SIPP will not be taken into account and should you have to declare bankruptcy, then your creditors cannot touch your pension plan either.

Is a SIPP the same as a Stakeholder Pension?
They are both very similar personal pension plans but you have much more investment choices, flexibility and control with a SIPP.
A stakeholder pension is more basic and the minimum monthly contribution is £20 per month and the maximum management fee which can be charged on a stakeholder pension is 1.5%.

Can I take out a lump sum from my SIPP?
Yes you can withdraw up to 25% tax free from your plan.

What happens if I die?
Should you die before drawing any benefits then your chosen beneficiary will receive the funds in a lump sum which are usually free from inheritance tax.
If you have already drawn on your SIPP and then die then tax will be deducted from the remaining amount left in the Self Invested Personal Pension plan and the remainder will again be paid to your beneficiary in a lump sum.