Personal Pensions
Your personal pension
We all know how important it is to make provision for our retirement. But not everyone realises that they can take control of their pensions. Self-Invested Personal Pensions allow you to take control of your pension investments, choosing when, where and how to invest.
Who provides SIPPs?
There are many providers of SIPPs. Details of providers can be found on the website of the Association of Member Directed Pension Schemes www.ampsonline.co.uk. Some of these providers offer only a range of funds like OEICs, some offer a wide range of readily available investments including equities like investment trusts, funds, life company pension funds or cash deposits. Others are able to own a range of other more unusual investments such as commercial property or limited partnership funds.
One provider through which you can buy a range of equities including Baillie Gifford investment trusts is Alliance Trust Savings Limited who offers the Select Pension. If you are an existing Select Pension holder, or want to find out more about the SIPPs which Alliance Trust Savings Ltd offers, click here to visit Alliance Trust Savings Ltd website.
What are the features of a SIPP?
Wide investment choice
Choose a SIPP where your money can be invested in a wide choice of different securities and investment funds, while ensuring these can include equities such as the investment trusts managed by Baillie Gifford. Full details about the investment trusts we manage and the associated risks are available in the investment trust section.
Create your own portfolio
This allows you to pursue your own investment strategy and build a diversified portfolio. Included in this should be the ability to invest in a cash deposit account and bond funds.
Consolidate existing pension arrangements
Transfer existing eligible pension investments in to one place so you can keep control over them provided you do not lose any existing advantages by so doing.
Annual Charges
Some Self-Invested Personal Pensions make annual and set up charges. Others do not. You should be aware that investment trusts do have underlying charges.
Transaction based charging structure
Some SIPPs use transaction based charges. You pay for the transactions you make and services that you use. Please note that most investments you select are subject to charges. Government stamp duty of 0.5% applies to most purchases of UK listed stocks and shares. FOR FULL DETAILS OF ALL THE CHARGES ON SIPPS YOU SHOULD VISIT THE PROVIDERS WEBSITE.
Tax relief on contributions
Personal contributions to a SIPP are eligible for tax relief.
If you are in any doubt about the suitability of any SIPP, including the Select Pension, please seek professional financial advice.
All investments you make in a SIPP are subject to risk and the value of these investments and any income from them can go down as well as up, and you may not get back, in the form of pension benefits, the amount you originally invested. Where a trust invests overseas, exchange rates can also affect value and income. Current tax rates and reliefs and the tax treatment of pensions may change. You should read and retain a copy of the Key Features and Contractual Terms of any SIPP before making any investment decisions. We would recommend that you print these out for future reference.
How can I invest?
There are a number of ways you can invest in a SIPP. Subject to the terms and conditions of the provider, you may:
Transfer your existing pension benefits
Make contributions yourself
Transfer shares from a company share scheme
Have your employer make pension contributions
