Self invested personal pension (SIPP)

Our self invested personal pension is provided and administered by Aviva – one of the UK’s largest insurance companies.

What is a self invested personal pension?

A self invested personal pension plan is a tax efficient savings plan that gives you greater flexibility over how your pension funds are invested.

A self invested personal pension lets you invest directly in a range of specialist assets including equities, gilts and commercial property. It also enjoys the same tax advantages of other personal pensions.

Key points about our self invested personal pension

• Wide investment choice – you can invest directly in shares and other assets such as investment trusts and Open Ended Investment Companies (OEICS)
• Property investment – your self invested personal pension can borrow money to make commercial property purchases
• Tax reliefs – self invested personal pensions enjoy the same tax advantages as other personal pensions
• Charges – charges for self invested personal pensions are generally higher than they are for other types of pension plan

Who is it for?

A self invested personal pension could be right for you if you:

• Make substantial pension contributions
• Want absolute control over your pension fund investments
• Can invest time and have the experience to manage your pension fund assets, or can employ someone to do this

We can help you

For advice on the type of asset you can put in your self invested personal pension, speak to our financial planning advisers.
0800 051 1871

Anyone aged between 18 and 75 can have a self invested personal pension.

Starting your plan

Self invested personal pensions are better suited to larger contributions or transfers in from previous pension plans.

• Contribution limits – you can save up to 100% of your earnings in a self invested personal pension, subject to a maximum of £255,000 (2010/11)
• Regular contributions – the minimum contribution to our plan is £200 a month or £2,400 a year
• Single contributions – if you’re starting a new plan with a single premium or transfer from another pension fund, the minimum is £20,000

Making investment decisions

You can choose to invest in the widest range of investment assets.

Self invested personal pensions tend to be more actively managed than other personal pensions – so there are more investment decisions to be made.

If you have no investments management experience, you may have to appoint a specialist to do this on your behalf.

• More on investment choices

When you retire

You can take your pension benefits whenever you want:

• Income and tax free cash – use the whole fund to buy an annuity which will guarantee you an income for the rest of your life. Alternatively, you can take up to 25% of your pension fund as a tax free lump sum and use the rest to buy a smaller annuity
• Phased retirement – where your pension fund is split into segments and used up gradually. You can take 25% of each segment as tax free cash and the rest is used to buy an annuity
• Income drawdown – where your pension fund remains invested but you surrender part of it each year to provide you with an income.

• More on income drawdown

We can help

For advice on the type of asset you can put in your self invested personal pension, speak to our financial planning advisers.
0800 051 1871

A self invested personal pension offers you the opportunity to invest in the widest range of assets, including:

• Insured funds – offered by insurance companies they include managed, equity and fixed interest funds
• Unit trusts – collective investments that cover a wide spectrum of equity investing opportunities
• Investment trusts – limited companies that invest in the shares of other companies
• OEICS – (Open Ended Investment Companies), most of the funds offered by UK investment management companies are OEICS
• Company shares – traded on the London Stock Exchange and Alternative Investment market (AIM)
• Exchange traded funds – like OEICS, but with shares listed on a stock exchange
• Commercial property and land – invest in individual properties let to a tenant at a commercial rate or indirectly through a property fund

We can help

For advice on the type of asset you can put in your self invested personal pension, speak to our financial planning advisers.
0800 051 1871

A self invested personal pension is one of the most flexible, tax efficient ways of saving for your retirement.

Tax benefits

• You get tax relief on your contributions, the amount of tax relief depends on how much you earn
• Your contributions grow in a tax efficient fund
• You can take up to 25% of your pension fund as tax free cash

Investment benefits

You will have a wide choice of investment options which normally includes:

• Insurance funds
• Unit trusts
• Investment trusts
• Open Ended Investment Companies (OEICS)
• UK and overseas equities
• Gilts
• Commercial property

Many of these investments will have greater growth potential than the funds available to most conventional pensions, and a higher risk profile.

Other benefits

• Your employer can make a contribution to your plan
• Your plan can accept transfers from most other pension schemes

We can help

For advice on the type of asset you can put in your self invested personal pension, speak to our financial planning advisers.
0800 051 1871

• How much can I pay into a self invested personal pension each year?
• Can I transfer other pensions into a self invested personal pension?
• How do I claim higher rate tax relief on my contributions?
• When can I start taking my pension benefits?
• What happens if I die before I retire?

How much can I pay into a self invested personal pension each year?
You can pay up to 100% of your earnings. Your employer can also pay into your personal pension. The total amount paid in is subject to a limit (called the Annual Allowance) of £255,000 for the 2010/11 tax year

These maximum amounts cover all your pensions, so if you have a pension elsewhere it needs to be taken into account. If you don’t have any earnings you can still contribute up to £3,600 a year and still get tax relief.

Can I transfer other pensions into a self invested personal pension?
Yes, our self invested personal pensions accepts transfers from most other personal pensions and company schemes.

How do I claim higher rate tax relief on my contributions?
You have to claim any higher rate tax relief through your annual self-assessment tax return. Your accountant or tax adviser can help you with this.

When can I start taking my pension benefits?
You can start taking your benefits from age 55. Under certain circumstances, if you cannot work due to ill health, you may be able to take your benefits earlier than this.

What happens if I die before I retire?

There are two options available:

• Return of fund – we’ll pay out the value of your pension fund
• Dependant's pension – your fund can be used to buy a pension for your spouse, civil partner or other dependants