What is a SIPP? Self Invested Pension Plan
SIPPS can be used to build up a pension for retirement or to house a fund set up after retirement. Like other personal pensions, SIPPs are available to employees who are, or are not in company schemes, also to the self-employed and to members of partnerships.
Separating the investment and administration elements of a pension contract, SIPPs allow the pension holder to choose from a very wide range of investments. These include stocks and shares, including investment trusts and OEIC (open ended investment companies) shares, on any Inland Revenue-recognised stock exchange, futures and options contracts, unit trusts, insurance company funds, traded endowments and deposit accounts. SIPPs can also be used to invest in commercial property..
A SIPP is a tax-free "wrapper" into which you can put a very wide range of investments and like a self-select ISA you decide what investments suit your needs.
The SIPP is an ideal home to use when transferring various past pension schemes into a single holding, and maintain easy control and access to your pensions.
