A Self invested personal pension plan is a personal pension arrangement which allows you to make direct investment choices from a wider range of investments. A SIPP offers you a tax efficient way to build up a fund to use when you retire. If you are self employed, or your employer does not have a company pension scheme, a SIPP could be the right way to save for your own retirement. SIPP can also be used to top up the benefits you will receive under a company pension scheme.
- Flexible contributions - you can make monthly or annual and single contributions.
- Wide choice of ethical investments, including funds and shares
- Tax relief on your contribution when you save into a pension, the government automatically pays 20% of your contribution. If you pay 40% or 45% income tax, you can claim back more through your tax return. The amount of higher tax relief available depends on your income.
- Tax-free growth within a pension, there is no capital gains tax or income tax to pay, so your investments can grow free of tax. Less tax means greater growth potential.
- Tax-free cash when you retire from age 55; you can normally take up to 25% of your pension as a tax-free cash lump when you retire, with the remainder used to provide a taxable income for life.
For more information on how we can help in this area, please contact us.