Self invested personal pension (SIPP)

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

A SIPP is a tax efficient savings plan that offers a high level of flexibility over how your funds are invested.

With a SIPP you can invest directly in a range of specialist assets such equities, gilts and commercial property. SIPPs also enjoy the same tax advantages of other personal pensions.

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

A SIPP could be right for you if you:

• Make sizeable pension contributions
• Want maximum control over how your pension savings are invested
• Have the time and the knowledge 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 on 0800 051 1872.

A self invested personal pension (SIPP) is available to anyone aged between 18 and 75.

SIPPs are better suited to larger contributions or transfers in from previous pension plans.

• Contribution limits – the maximum amount you can save in a year is 100% of your earnings subject to an overall limit of £255,000 (2010/11)
• Regular contributions – the minimum contribution to our plan is £200 monthly or £2,400 annually
• Single contributions – the minimum single contribution (or transfer in) for a new SIPP is £20,000

Your SIPP can invest in the widest range of investment assets.

SIPPs are usually managed more actively than other personal pensions – there are more investment decisions to be made.

If you have no experience in managing investments, you may want to employ a specialist who can advise you.

• More on investment choices

You can take your benefits whenever you choose between age 55 and 75. Your benefits can be in the form of:

• An income for life – using the whole pension fund to buy an annuity. This will provide an income for the rest of your life
• Income and tax free cash – take up to 25% of your pension fund as a tax free cash sum, using the remainder to buy a smaller annuity
• Phased retirement – where your pension fund is broken into segments and used up step by step. You can take 25% of each segment as tax free cash and use the remainder to buy an annuity
• Income drawdown – you can keep your money invested but surrender part of it every 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 on 0800 051 1872.

With a self invested personal pension you can invest in the widest range of assets, including:

• Insured funds – run by insurance companies these include managed, equity and fixed interest funds
• Unit trusts – investments that cover a wide range of equity investing opportunities
• Investment trusts – limited companies designed to 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 – or equities, 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, commercially let properties 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 on 0800 051 1872.

Self invested personal pensions are flexible and tax efficient – and they give you access to the widest range of investment opportunities.

• Tax relief on your contributions. The amount of tax relief you get depends on your earnings
• Your pension contributions grow in a tax efficient fund
• You can take up to 25% of your pension fund as a tax free lump sum

You will have a wide range of investment assets which normally includes:

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

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

• You can make monthly or annual contributions
• You can make single contributions whenever you like
• Your employer can contribute
• If you have any other pensions, you may be able to transfer them to your self invested personal pension
• You can contribute up to 100% of your earnings each year (maximum £245,000 2009/10)

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 on 0800 051 1872.

• 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.

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