Is a Self Invested Personal Pension Right For You?

| August 21, 2013


If you have been looking into your pension and making decisions about your retirement, you might have heard about SIPPS or the Self Invested Personal Pension Scheme. This pension plan gives you the freedom to control how your fund is invested, rather than leaving these decisions up to the company that has sold it to you.

When it comes to a typical personal pension plan, you will make regular payments into a pension fund and the provider will invest this money on your behalf. You might have a choice when it comes to funds or fund managers, but most of the time you will have very little control over where, when and how this money will be invested.

However, when you have your money invested in a SIPP, you will have more direct control over your investment management. You can communicate with your financial advisor and let them know of your needs and preferences, so that you can make decisions about where and how much you want to invest.

The Advantages and Disadvantages of SIPPS

There are many advantages to choosing this type of pension plan. One of the biggest advantages is that it allows investors to be more “hands on” with their investment choices. Also, they will provide access to a much bigger range of investments than other types of personal pensions. This means that there is a potential for higher returns (as well as higher risks). This means that SIPPS have the potential for a more aggressive investment strategy and much higher returns than a traditional style of personal pension.

However, this freedom comes with a price and the charges for this type of pension are usually a lot higher. Also, for some people having this much control over their money is an unwelcome burden. There are also the additional costs to consider of getting investment advice from an independent financial advisor.

Is a SIPP Right For Me?

Take an honest look at your financial situation before deciding whether or not a SIPP is right for your needs. Do you think you will be able to build a bigger pension fund by managing your own investments? Will the bigger returns that you expect be enough to justify the extra costs that are associated with SIPPS? How committed are you to building up your pension fund and will you be able to contribute several hundred pounds each month to your pension?

If you are still not sure about whether a SIPP is right for you, talk to your financial advisor.

Taylor Brunswick Can Help With All Your Pension Needs

When you are making decisions about your pension, it helps to have an experienced and highly knowledgeable expert on your side. Taylor Brunswick is a financial advisor that specialises in wealth management and can help you with all of your pension needs.

They are a team of financial investment experts who are bringing the standard of onshore financial advice offshore. They are devoted to providing forward thinking, client focused and independent advice.

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Category: Financial Planning, Investing, Investment Planning

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