Self-Invested Personal Pensions (SIPPs)
Saving in a tax efficient manner towards your pension is always desirable and SIPPs make this possible, along with the added benefit of flexibility. Self-invested personal pensions (SIPPs) are a type of personal pension that give a much greater range of investment options than those generally available through most traditional pension plans. However, with a SIPP you are still able to invest in a number of assets and asset classes including equities, unit trusts, gilts and commercial property.
This flexibility allows you to spread risk, especially if some investments perform badly, and switch your investments as you need. However, these do tend to have higher costs than a standard pension and active management is essential to maximise the benefits of the wider investment choice on offer. For these reasons, SIPPs will not be suitable for everybody and generally only those who are fairly experienced at actively managing their investment should consider this type of investment.
The investment growth within the fund is currently free from all UK Income Tax and Capital Gains Taxes. At McMillan Wealth Consultants, we can help manage your investments within chosen funds and advise you on a range of SIPP investments or use our expertise to make informed investment decisions on your behalf. Please note that when drawing funds, you will be charged at your marginal rate of tax.
The value of a SIPP can fall as well as rise. You may get back less than the amount invested.
The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.
Please contact us if you would like to know more about SIPPs.