Self Invested Personal Pension (SIPP)
A Self Invested Personal Pension (SIPP) is a HM Revenue & Customs registered pension scheme that offers greater choice and flexibility over your pension. It is a pension that allows you and your financial adviser to make decisions about where you invest your pension savings. So, you and your financial adviser take complete control of your retirement wealth planning.
Key benefits of a SIPP
- Tax - SIPPs are set up as trusts, separating pension funds from other assets for inheritance tax and capital gains tax purposes.
- Tax relief - Basic rate tax relief can be claimed on contributions into a SIPP and this can then be added to the fund to benefit from the Government incentive for saving into a pension. To invest £100, it will only cost a basic rate taxpayer £80.
- Contributions - Those in employment can contribute 100% of their annual earnings before tax up to a limit of £50,000. Non-earners can contribute up to £3,600 (including the tax relief) per tax year and still get basic rate tax relief.
- Commercial property - One of the great advantages of SIPPs is that they allow a wide range of investment types including direct investment in commercial property, allowing any business premises and the rental income from it to be put into retirement savings.
- Consolidation - Modern working culture often means individuals accumulate more than one pension. A SIPP is a great way of getting past pension funds in one place so they can be managed in a more considered way.
- Taking benefits - SIPPs provide a great deal of flexibility on taking benefits from the pension accrued and your taking of benefits does not have to be linked to your retirement.
With the launch of the flexible and cost effective Modular iSIPP, you only pay for what you use, and only while you use it.
Watch our Modular iSIPP video
Our Modular iSIPP is designed to be both flexible and cost effective.
At its core is a low cost, online SIPP which offers pension savers a wide choice of investment options including:
- Access to over 2200 investment funds from leading managers via our Investment Centre
- A Panel of fixed term deposit providers
- A Panel of Execution Only Stockbrokers including Selftrade
- A Panel of Investment Managers.
This core SIPP is all that many clients will need. However they also have the option to add (and take away) up to three further investment modules:
- Whole of Market module
- Commercial Property module
- Specialist Investments module
Fair charging model. The annual administration fee for the Modular iSIPP is just £195. Better still, the Modular iSIPP annual administration fee is waived if your client has over £195,000 invested in the Investment Centre, product bank accounts or the fixed term deposit panel, across all of their Modular iPlan products.
We only charge for the modules selected and then annually thereafter at the anniversary of the product if a module is in use at that time.
This approach means the Modular iSIPP charges reflect the investment options being used, whether core investments or a more complex portfolio.
To see just how cost-effective the Modular iSIPP is, you can view an independent comparison of different SIPPs by clicking here.
Modular iSIPP Terms and Conditions
Key Features of the Modular iSIPP
Modular iSIPP Charges Schedule
Modular iSIPP Permitted Investments List
Points to consider
Modular iSIPP may not be suitable for all investors and if you are in any doubt you should consult your financial adviser. James Hay Partnership is not authorised to give financial advice. If you do not already have a financial adviser, information can be obtained from http://www.unbiased.co.uk/.
Tax Risk Warning
Current pensions and tax legislation and HMRC practice could change in the future. This may affect the value of your investments and pension benefits you receive from the Modular iSIPP. In addition, your individual circumstances will impact the tax treatment of your Modular iSIPP and may also be subject to change in the future.
Capital At Risk Warning
The value of your Modular iSIPP will be determined by the valuation of all the investments held within it. Depending on the type of investments that you choose to hold within your Modular iSIPP, some of these may not return the amount you initially invested especially where their value can go down as well as up. This could also impact the level of benefits you can take on your retirement from your Modular iSIPP
You can also find useful and impartial information about pensions, savings and investments on the Money Advice Service website, formerly the UK Consumer Financial Education Body (CFEB).