PENSION TAX RELIEF
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Anyone under the age of 75 in the UK can start a self-invested personal pension (SIPP), and there are no age limits for transferring other pension monies into one. SIPPs allows you to save and invest money toward your retirement.
A SIPP is a type of personal pension and works in a similar way to a standard personal pension. The main difference between a SIPP and a standard personal pension is that with a SIPP, you have more flexibility with the investments you can choose.
Traditional personal pensions tend to offer between a dozen and several hundred funds. Their charges can be hefty, particularly on older plans. Stakeholder pensions have lower charges, but tend to offer a more limited choice of funds.
The wide investment choice in SIPPs can make a significant difference to your pension. That’s because how your investments perform can have a large impact on the size of your pension pot and eventually your retirement.
If you are not sure which investments are right for you, we can put you in touch with someone who can assist.
Pensions are meant for your retirement, so you normally can’t access your money until 55 (57 from 2028).
Pension and tax rules can change and benefits depend on your circumstances.
SIPPs, like other pensions, are one of the most tax-efficient ways to save for retirement. However, most traditional pensions don’t give you the flexibility to invest where you want to. It’s not always easy to see or understand where you’re invested.
SIPPs provide you with the flexibility where you can make changes and additions to your investments as often as you want.
A SIPP lets you do more with your money. It gives you control over your investments. With a wider range of investment options, it opens the doors to more opportunities.
SIPPs affect your lifetime allowance similar to other defined contribution pensions.
This does not constitute tax and/or legal advice and should not be relied upon as such.
You should seek tax, legal or other professional advice before acting or relying on any content.
SIPPs offer the same generous tax benefits as other pensions.
Remember, pension and tax rules can change and benefits depend on your circumstances.
If you’re a Scottish taxpayer, tax bands are different and different benefits apply.
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