| SIPP Explained |
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A SIPP can be used in two ways: SAVING FOR YOUR FUTURE With a SIPP you’re able to choose how you want to save for later life. You can make single payments, regular payments, and stop and start when you want. And any payment you make will be boosted by tax relief from the government. Tax relief can change and its value depends on your individual circumstances. You can also choose to move your existing pensions into it. What’s more, with a SIPP you’re able to choose from a much wider range of investment options, including cash, bonds, shares, commercial property, gilts and investment funds. Which means you can sit down with one of our advisers and pick investments that suit you. It’s important to note that the value of an investment can go down as well as up. And if anything changes – your needs, your attitude to risk or the markets in general – there’s nothing to stop you from switching your investments around. TAKING AN INCOME Unlike conventional pensions, a SIPP gives you the flexibility to decide when and how you get hold of the money you’ve built up. You can forget the rigidity of annuities, where you make one income choice and get stuck with it for the rest of your life. With a SIPP you can draw money from your savings in a whole range of ways, without being tethered to a decision you made in the past. Once you reach age 50 (or 55 from 2010) you can top up your salary with an income from your SIPP. And you can stop, start, reduce or increase this income as you need it, subject to limits on the amount you can take. |
SIPP Explained