Self-Investment Personal Pensions, retirement pension schemes, pension transfers, pensions for company directors, pension drawdown, annuities

Self-Investment Personal Pensions (SIPP)

A Self-Invested Personal Pension can be the ideal vehicle to accumulate wealth for your retirement years, if appropriate to your situation.

Investment choice

A SIPP is a self-administered or self-invested arrangement, which allows you to take an active part in where your money is invested. These functions can be performed by you or delegated to a professional third party. They can offer a wider investment choice and administrative flexibility compared with traditional insured personal schemes.

Start of article about pension schemes.

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For a complete independent analysis of your current pension arrangements and requirements, you should speak to an independent financial adviser.

Pensions for Company Directors

When was the last time you reviewed your pension arrangements? And do you know what level of income your pension is likely to provide you with? For an informed review of your current situation, why not speak to an independent financial adviser for further information.

Pensions are one of the most tax-efficient ways to save for retirement. As an employed higher-rate taxpayer contributing to a pension you receive tax relief at the highest rate. If your company pays the pension premium for you, your pension contributions do not attract employer or employee National Insurance unlike your salary.

Annuities

One option at retirement is to buy a traditional annuity. In buying an annuity you are exchanging your pension fund for an income for the rest of your life.

An annuity can also provide a pension for you wife or husband, increasing each year or just remaining level in payment.

The income from a standard annuity is based on the interest rates in force on the day when you buy the annuity. This is because annuities use gilts (fixed interest Government stock) to provide the retirement income. As a result, annuity rates are generally high when interest rates are high. However, if interest rates are low, the yield from gilts is reduced and the income from a standard annuity will be less.

For the more adventurous individual, an alternative is to buy an investment annuity where you still get an income but your pension fund remains invested. The income from the annuity then fluctuates, depending on the how the underlying fund is performing.

Pension drawdown

Self-Investment Personal Pensions and retirement pension schemes, pension transfers and pensions for company directors, pension drawdown and annuities