Nicholls Stevens specialise in giving retirement advice to our clients. In recent years we have assisted may clients with larger funds to consider Self Invested Personal Pensions (SIPP) because it gives greater investment choice.
A Self Invested Personal Pension is a personal pension with a wide investment choice including the option to purchase commercial property. The scheme does not need to be run by an Insurance Company. There are specialist Actuarial and employee benefits companies offering the administration package and it is possible to run a simple scheme on line. For many clients we recommend this method because it is inexpensive and easy to operate with a wide choice of investments both direct equities and collectives.
Because of the investment choice the cost of running such a scheme may be higher and you need to think carefully before embarking on such an arrangement.
However, with a proper asset allocation, a wide choice of funds and regular reviews it may be possible to obtain a better return from the SIPP of your choice than the standard personal pension or stakeholder arrangement. The abolition of the necessity to purchase an annuity means that the SIPP has an even more important role to play because many clients will now have a self invested pension plan for life.
If you are considering a Self Invested Personal Pension you need to make sure that a full comparison has been done between this method of securing the benefits and a Stakeholder Pension.