A SIPP is a self-invested personal pension. It is a type of personal pension which gives you a much higher level of control when compared to any other pension. The value of an investment can change, of course, so remember that you could lose money as well as make it. If you aren’t sure about what SIPP is or how it could be beneficial to you then simply take a look below.
What are the Benefits of SIPP?
SIPP is able to offer you a huge range of tax benefits and this is especially the case when you compare them to other pensions. The general idea is that for every £8,000 you pay in, the government will then add £2,000 to it. If you are in the higher range of tax then you will be able to claim even more tax relief. Of course, how you are taxed will depend on your current circumstances. Your pension and your tax rules might change. If you are under the age of 75 then you can choose to pay into an SIPP. Even if you are not earning right now, it’s possible that you can pay up to £2,880 net every year. You will receive tax relief for it. If you want to look into the benefits of becoming an expat, then look into pensions for expats.
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What can you Invest In?
You can access a huge range of investments, which will include bonds, shares and funds. You will also be able to invest in ETFs and ETCs too.
Who can Open a SIPP?
If you are a resident in the UK or if you are an employee of the Crown then you can open up a SIPP. You will be making your own investment decisions however, so you have to make sure that you are confident in what you are doing, and you also need to be prepared to do the work. You can also transfer a pension that you do have into SIPP if you want, but there’s a chance that you would be better off leaving it where it is. If you are not sure about your choices or if you want to transfer a defined scheme, then it may be worth seeking advice from a financial advisor. When you do, they can then give you the help and support you need and they can also work with you to try and make sure that you are happy with your decision overall.
How do I Pay into a SIPP?
It’s more than possible for you to make one-off payments to your SIPP and you can also put in a very small amount of payments, whether they are one-off or regular. You are in complete control over your investment and you can also decide how much you want to put in. Remember there are big benefits to be had as well. If you want to find out more then simply consult your financial advisor.