Alternative Pension Choices

Making sure that you put the right solution in place for your retirement needs is essential to safeguard a good quality of life for your golden years. Here we consider three solutions that you may wish to discuss with an independent financial adviser.

Self-Invested Personal Pension (SIPP)

A Self-Invested Personal Pension can be the ideal vehicle to accumulate wealth for your retirement years, if appropriate to your situation. Although individuals can set up SIPPs, they are also attractive when arranged on a group basis for professional partnerships or as an alternative to occupational pensions and group personal pension plans (GPPs). More info...

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.

Why a SIPP?

Transfers can be received from other pension schemes (excluding contracted-out benefits).

Direct investment can take place in stocks and shares traded on recognised exchanges including AIM (excludes Ofex), unit trusts/OEICs, managed life and pension funds, cash, and commercial property and land.

In purchasing a commercial property, the SIPP can borrow up to 75 per cent of the purchase price.

SIPPs can be used to postpone an annuity purchase while generating income within predetermined limits.

Small Self-Administered Pension Scheme (SSAS)

Are you a company director? If so, then your pension arrangements should also take account of the advantages of executive schemes such as SSASs. In times of need or opportunity, these schemes should be able to provide an additional bank account too.

Not only can pension funds be used for commercial property purchase, but they are also permitted to make loans to companies, within certain limits. That said, never overlook the fact that, despite their tax and other financial advantages, the main purpose of setting up pension arrangements is to provide for members' retirement.

Executive Pension Plan (EPP)

If you are an owner-director of your company wishing to provide pension enhancements for both yourself and your senior employees, then an Executive Pension Plan could be the ideal solution for your company's pension arrangements.

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