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Sipp: how to pick a self-invested pension plan

Want more control over your pension investments? Then read our guide to self-invested pension plans (Sipps).


by Michelle McGagh on Feb 03, 2012 at 15:10

Sipp: how to pick a self-invested pension plan

More and more people want to plan for their retirement with a self-invested personal pension (Sipp). But how do they work, and what do you need to know? 

This is the second in a series of pension guides. If you're new to pensions, read our beginners' guide

What is a Sipp?

Sipps were launched in the early-90s, and there are now 750,000 Sipps in the UK, holding an estimated £110 billion of savings. That’s a lot of people using a Sipp, so what’s so special about them? 

The main difference between a bog-standard pension plan and a Sipp is that the latter offers a much wider choice of investment, although that often comes at an extra cost.  

What can Sipps invest in?

Here’s a list of some of the main assets you can invest in through a Sipp:

  • Stocks and shares quoted on the UK Stock Exchange and the Alternative Investment Market.
  • Investment trusts listed on any stock exchange.
  • UK government bonds, plus bonds issued by foreign governments.
  • Loan stock issued by companies, known as corporate bonds.
  • Open ended investment companies which are recognised by the Financial Services Authority.
  • Authorised unit trusts which are resident in the UK.
  • Exchange traded funds traded on the London Stock Exchange or other European markets.
  • Bank deposit accounts including non-Sterling accounts.
  • Commercial property in the UK. Some business owners use their Sipp to invest in their business premises.
  • Unregulated collective investment schemes (Ucis) that are HM Revenue & Customs allowable.
  • Real estate investment trusts listed on any stock exchange.
  • FSA-recognised offshore funds.
  • Endowment policies.
  • With-profits policies.
  • Unlisted shares and those issued by private companies.

Although the scope of what you can invest in is huge, there are a few things the tax man does not want you to invest in a Sipp. You've face a punitive fine if you hold any of the following in a Sipp:

  • National Savings & Investments accounts.
  • Direct investment in overseas property.
  • Residential property.
  • Derivatives, including warrants, futures and options.
  • Personal effects such as wine, antiques or jewellery.

If you put taxable property into a Sipp the tax man will levy a charge of 40% of the value of the investment. But the charges do not stop there – there is a further 15% charge if the unauthorised payment makes up over 25% of the assets held in the Sipp.

The scheme administrator, the company providing you with the pension, is then charged 15% of the unauthorised payment, which it recovers from your pension fund and to top it off there is another 40% charge on any income you have made from the unauthorised payment and a 40% charge on any capital gains you made from the unauthorised payment.

How do I access a Sipp?

There are about 150 companies operating Sipps. Some are run by financial institutions you may have had dealings with before, others are Sipp specialists and some are run by financial advisers. There is a full list at the end of this guide. 

Generally the way you access a Sipp is online via a provider’s website. Much like online banking you will be able to see how much money is in your pot and where it is invested. If you are investing your money yourself, you will most likely use an ‘execution-only’ service provided by your Sipp company.  Execution-only just means that you are making the decision on where to invest, and that you have received no advice from the provider: the company is only letting you execute a trade

What’s the minimum I can invest?

Each Sipp provider has different rules on minimum investment, but some start at as little as £50 per month. Generally, Sipps offering a wide range of investment options will have a higher minimum level of investment.

Even if you set up a regular monthly payment into your Sipp you can still top up with lump sums if and when you have some spare cash.

Of course, how much you save should not be based on the minimum you can get away with, but on how much you need to generate a decent income in retirement.

For more on this topic, read How much should I save for my pension?

There is a limit

As with any pension plan, you can only invest a certain amount of money annually into your Sipp and there is also a lifetime allowance. For the tax year 2011/12 you cannot put more than £50,000 into your Sipp or invest more than £1.8 million over your lifetime.

How much is a Sipp going to cost?

The cost of the Sipp depends on the provider and what it is offering you. Here are some generic costs that are worth comparing.

  • Is there a fee for setting up the Sipp?
  • What are the charges if you want to transfer money in from another pension? 
  • What are the charges if you decide to move money around inside your Sipp?
  • Are there any management costs?
  • Does the provider negotiate any sort of discount on the cost of the funds you can invest in via its Sipp?
  • How good are the interest rates offered on the cash accounts?

Can I consolidate my pensions?

You can also consolidate all your existing pensions into your Sipp. Some people like to do this so they have all their pensions savings in one place and are not paying a multitude of charges across different plans. The charges for consolidating your pension pots are often substantial, and you will need the help of a professional adviser to do this.

How much tax will I pay?

Sipps are bound by the normal tax rules for pensions. As with a standard pension plan, investors receive tax relief on investments they make into their Sipp and are eligible for a 25% tax-free lump sum on retirement.

Everyone who pays into a pension is eligible for tax relief on contributions they make; what level of tax relief you get depends on how much income tax you pay. If you are a basic-rate taxpayer then you will automatically receive 20% tax relief every time you pay into a pension. Higher-rate taxpayers also get 20% automatic tax relief on contributions they make but have to claim back the extra 20% each year via a self-assessment form.

Can someone else invest the money?

If the thought of taking your financial future in your hands terrifies you, it doesn’t automatically mean you should rule out Sipps, but it may be time for you to get some advice.

A good IFA (independent financial adviser) will help but they may be less willing to look after your pension in isolation. A good adviser will want to look at your overall finances, not limited to your pension, and build you an holistic financial plan plus give you regular ongoing advice.

Citywire’s Adviser Finder tool can help you find a well-qualified IFA in your area

·  @sipp Plc

·  A J Bell Management Limited

·  AWD Chase de Vere Limited

·  AXA Portfolio Services Limited

·  AXA Wealth Services Limited

·  Alliance Trust Savings Limited

·  Alltrust Services Limited

·  Ashcourt Rowan Administration Limited

·  Attivo Financial Services Limited

·  Avalon Investment Services Limited

·  Aviva Life & Pensions UK Limited

·  BNP Paribas Securities Services


·  Berkeley Burke SIPP Administration Limited

·  Bridgewater Pension Trustees Limited

·  Brooklands Trustees Limited

·  Brown Shipley & Co Limited

·  Cabot Trustees Limited

·  Calderwood Pensions Limited

·  Capita Life & Pensions Regulated Services Limited

·  Cardens Pension Trustees Limited

·  Carey Pensions UK LLP

·  Central Financial Planning Ltd

·  Cheviot Asset Management Limited

·  Church House Investments Limited

·  City Pensions Limited

·  Corporate & Professional Pensions Limited

·  Courtiers Investment Services Limited

·  Curtis Banks PLC

·  D P Pensions Limited

·  David Booler & Company

·  Dentons Pension Management Limited

·  EBS Management Plc

·  Ebor Trustees Limited

·  European Pensions Management Limited

·  Friends Life Services Limited

·  Gaudi Regulated Services Limited

·  Gresham Pension Trustees Limited

·  Greyfriars Asset Management LLP

·  Guardian Pension Consultants Ltd

·  Guinness Mahon Trust Corporation Limited

·  HD Administrators LLP

·  HSBC Trust Company (UK) Ltd

·  Hargreaves Lansdown Asset Management Limited

·  Harsant Services Limited

·  Heritage Pensions Limited

·  Highgrove Trustees Limited

·  I.P.M. SIPP Administration Limited

·  IPS Pensions Limited

·  Integrated Financial Arrangements Plc

·  Intelligent Money Ltd

·  Investacc Limited

·  Investacc Pension Administration Limited

·  Investec Wealth & Investment Limited

·  Investment Funds Direct Limited

·  J.P. Morgan Trustee & Administration Services Limited

·  James Hay Administration Company Ltd

·  Killik & Co LLP

·  Legal & General Assurance Society Limited

·  Lemontree Wealth Limited

·  Liberty Sipp

·  Liverpool Victoria Friendly Society Limited

·  London & Colonial Services Limited

·  M C Trustees (Pensions) Limited

·  MAB Pensions Limited

·  MJF Pension Trustees Limited

·  MW Pensions Limited

·  Macquarie Bank International Ltd

·  Mattioli Woods PLC

·  McDonald Associates Limited

·  MetLife Pension Trustees Limited

·  Metlife Europe Limited

·  Montpelier Pension Administration Services Limited

·  Morgan Lloyd SIPP Services Limited

·  N W Brown & Company Limited

·  NSS Trustees Limited

·  Novia Financial Plc

·  Organon SIPP Services Ltd

·  Origen Investment Services Limited

·  PS Employee Benefits Ltd

·  PSFM SIPP Limited

·  PSG SIPP Limited

·  Pearson Jones Plc

·  Pensions Administration Ltd

·  Personal Pension Trustees Limited

·  Pilgrim Trustee Services Ltd

·  Pointon York Sipp Solutions Limited

·  Rathbone Pension & Advisory Services Ltd

·  Redswan Limited

·  Robert Graham Trustees Limited

·  Rowanmoor Personal Pensions Limited

·  SG Hambros Trust Company Limited

·  Sanlam Financial Services UK Limited

·  Scottish Friendly Insurance Services Ltd

·  Scottish Widows Plc

·  Sippchoice Ltd

·  Stadia Trustees Ltd

·  Standard Life Assurance Limited

·  Suffolk Life Annuities Limited

·  Suffolk Life Pensions Limited

·  Talbot and Muir SIPP LLP

·  Taylor Patterson Associates Limited

·  The Hornbuckle Mitchell Group Limited

·  The IPS Partnership plc

·  The Lifetime Sipp Company Ltd

·  The National Farmers' Union Mutual Insurance Society Limited

·  The Prudential Assurance Company Limited

·  Towry Pension Trustees Limited

·  UPTEL Limited

·  Wealth At Work Limited

·  Wealthtime Limited

·  Wensley Mackay Limited

·  Wesleyan Bank Limited

·  Westerby Trustee Services Limited

·  Whitefoord LLP

·  Winterthur Life UK Limited

·  Xafinity SIPP Services Limited

·  Yorsipp Limited

43 comments so far. Why not have your say?

Nigel Bradley

Feb 03, 2012 at 17:32

I have a SIPP with a commercial property in it. I'm being threatened with an unauthorised payment charge - I need an expert to advise me - anyone know a true expert on this?

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Cindy Aspland

Feb 05, 2012 at 08:59

You ARE allowed to hold commercial property in your Sipp (I have done so for 5 years). It is only residential that is not allowed.

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Feb 05, 2012 at 09:00

Not all SIPPs are full "bells and whistles" ones that let you hold (for example) property, and many are just self-select pensions with a different name. Some such as BestInvest don't even let you hold individual bonds, gilts and (as I found out recently) preference shares such as LLPC.

As watch out for SIPPs that impose a platform charge if you hold anything other than OEICs that give the provider a large kick-back.

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Lord Meekat

Feb 05, 2012 at 10:29

Pity you did not mention SIPPDEAL.

You should have said it is just a part of A J Bell

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alistair richardson

Feb 05, 2012 at 11:16 seem by far the best and cheapest that I could find.

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Matthew Hill

Feb 05, 2012 at 11:32

Nigel - I use Helen Pescodd (IFA) of Sterling FInancial Consultants. She seems to know everything! Her number is 0207 5376934. Good luck

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Feb 05, 2012 at 11:47

Nigel - With respect to Matthew Hill, what you need is a pensions solicitor, not an IFA. Look on the website of (for example) Royds LLP.

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Matthew Hill

Feb 05, 2012 at 12:16

Fair comment Maverick. I prefer to let my IFA handle these sorts of issues because they are cheaper than solicitors and can refer you on, if necessary, to an appropriate party. Personal preference I guess

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Manilal Shah

Feb 05, 2012 at 12:27

You do not provide full picture of SIPP. Under drawdown You are only allowed to draw amount which is decided by the Government. It does not take into

account state of your health, Amount of your Investment etc. Any amount left is

to be paid to your children you have to pay Tax of 55%. I want to ask you and

The Government what is the basis of 55% Tax on remaning in your Pension at the time of your death.It is Rip off. You should tell People not to save anything

under any Pension.

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Feb 05, 2012 at 13:13

If you want the state of your health taking into account, either go for an enhanced annuity or a scheme pension. If you want to draw more than the GAD limit per annum, then use some of the pot to buy a flat annuity that will qualify you under the MIR rules and use flexible drawdown for the rest.

Eschewing a pension yourself is one thing, but it does trouble me that some under-informed people are advising their children and others to follow in their footsteps. Blind leading the blind or what!

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Feb 05, 2012 at 13:22

Manilal Shah, you miss the principle behind the taxation treatment of pensions. Successive governments have encouraged those of us with sufficient excess resources and a sense of personal responsibility to save for our old age by not placing an income tax burden on such savings. If you die and have not utilised all of these savings there is no rational justification for passing the remaining balance tax free to your beneficiaries, since you did not pay income tax on your contributions nor on any growth that may have been achieved. You really can't expect to have it both ways!

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Manilal Shah

Feb 05, 2012 at 13:50

I am not having Both Ways. They can charge Tax Yes but not 55% and as for Growth it is included in the Balance left and they charging 55%. What I have drawn they charged Tax. They only allowed me Tax allowance of maximum 22% and they are charging 55%. My objection is only on Percentage of 55%.

It will discourage People to save money on Pension. It is better to Pay tax of 22% and you do not have any condition how much you withdraw and how much you pass to your childeren oupn your death.


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Feb 05, 2012 at 14:19

For those only paying basic rate tax, who won't get employer contributions, can't make NI efficient salary sacrifice payments, and won't be tempted to raid funds held outside pensions, then ISAs are arguably an alternative.

As an example of how open-minded I am, I'm doing both. :-)

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andrew buckley

Feb 05, 2012 at 17:05

So which growth stocks or funds would you invest in, within a SIPP?

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Feb 05, 2012 at 17:48

Manilal Shah. The answer of course is to try not to die prematurely!! If you have a health problem then you may well be better off investigating an enhanced or impaired life annuity. Regarding tax rates you may be a basic rate tax payer, but I would guess that the majority of those on income drawdown are higher rate taxpayers. Anyway as another poster said, you may consider investing for your retirement using ISAs instead.

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Manilal Shah

Feb 05, 2012 at 18:50

Issue is not what I should look for what I wish to know what is the basis of

charging 55% Tax. I just wnat know why Government is charging 55% Tax.


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Feb 05, 2012 at 18:58

The 55% is to prevent people slamming money into pensions to try and dodge IHT. My view is that my pension is to let my spouse and myself live between retirement and death. Anything extra it manages is upside and my offspring won't be short of a few bob no matter.

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Manilal Shah

Feb 05, 2012 at 19:10

There is no dodgeing between Pension and IHT. Anything left in your Pension

goes in your estate upon death and can be charged at 40%. The question of your offspring will be short or won't be is not the issue. I just want to know what is the basis of 55% Tax. IHT tax is 40% so what is the basis of 55% Tax


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Feb 06, 2012 at 10:50

Manilal Shah

"I just want to know what is the basis of 55% Tax. "

Have you asked HMRC? Its their rules after all - nothing whatsoever to do with the pensions industry!

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Feb 06, 2012 at 11:17

My guess is that the IHT charge is 40% and there is a scheme charge of 15% - same as an unauthorised payment - to deter you from doing it. However, if you have at least £20k pension income then flexible drawdown will let you take it all out as a one off taxable income payment.

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Hyman Wolanski (MD Sippchoice)

Feb 06, 2012 at 13:28

The basis for the 55% tax charge is that it is a (broad) attempt by the Govenment to recover the tax relief provided on the 'excess' funds remaining in the SIPP. It is an estimate of the value of the tax relief provided (at source) on the contributions paid into the SIPP and of the benefit of the tax-free investment returns within the SIPP.

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David N Tate

Feb 09, 2012 at 16:53

The writer should get his facts right:-

NS&I investments are allowed for:_

Guaranteed Equity Bond

· Index-linked Savings Certificates

· Fixed Interest Savings Certificates

· Income Bonds

· Guaranteed Income Bonds

· Guaranteed Growth Bonds

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Feb 10, 2012 at 13:15

Maybe I missed something but since when were derivatives subject to punitive tax charges if held in a SIPP?

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Feb 19, 2012 at 09:33

I Agree with Mr Shah.

55% is outrageous. You can be sure that Cameron and Glegg as millionaires have stuff in place to ensure that their kids get the dosh at 0%

What surprised me (should not have) is that it was Clegg who increased it from 30% to 55%..

I think the only answer is to vote for some obscure party who will erase all of this Govt scamming. The Con Libs and particulalry the Labs are well into the Establsihment and know aobut inflating away debot, robbing pensions 12 times in recent years, robbing the dead, wholsat at all times ensuring they are OK.

Unfortunatley there are no real alternatives. The Nazis rose in the 20s and 30s by appealing ot the unhappiness of the recently impoverashied Germans. They had no problem at all in taking powee by simply promising peopel what they wanted. I can see this happening eventually in various countiries when the people have had enough.

Hopefully not - but I could stand 5 years of a new party who might inject some justice into this system. That would shock the Con lib labs into doing what people want rather than listending to the mandarins of the civil service who really run this country

Its amazing that 50 million plus of us cant dictate to a couple of thousand of them. Should be possible.

in the meantime pay your 55%, wathc your money magiced away

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Manilal Shah

Feb 19, 2012 at 11:04

Thank you Banjofred. I inquired about this to my MP but was told this is the nLaw.I only want to know what is the basis of 55%. Why 55% and why not 90% or why not 30%. They cannot answer.All laws are made with some justification

but here there is no Justification.

Manilal Shah

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Feb 19, 2012 at 14:41

What justification did Gordon Brown have to tax our dividends?

What justification did he have to sell of our Gold reserves

Getting my wife to work another 2 years before her pension (CleggCamCons)

They can do ANYTHING they like anytime. We give them pwoer and they use it to their own best advantage

The recent riots in parts of the UK, and the regular riots elsewhere show that the days of touching forelocks and looking up to the upper class are long over.

The British continue to be a patient lot, but patience will eventually come to an end.

When they can no longer feed them the Soylent Green there iwll be trouble.

Thats democracy

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Feb 19, 2012 at 16:24

Banjofred, whilst I sympathise with your obvious frustration I do feel that you are make rather sweeping statements.

Just what advantage have Messrs Brown, Cameron and Clegg obtained from exercising the limited power our political system has granted them? They really can't do ANYTHING they like at any time as the expenses scandal has shown, as did the loss of office for the arrogant incompetent Brown, and Laws and Fox.

The recent UK riots were prompted by the uncontrolled greed of a largely violent and criminal element coupled with extensively incompetent policing. The days of forelock tugging and kowtowing to the upper classes were over decades ago; the riots were nothing but a display of lawlessness and a loss of respect for ANY authority.

Thats anarchy

Do you truly believe that it is sustainable and just to our children and grandchildren to leave the state retirement and public sector retirement ages as they were, with extending life expectancies and to continue profligate spending and seeming uncontrolled public sector borrowing leaving the debt for future generations?

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Feb 19, 2012 at 18:13

OK Sinic, I accepted those new boys have had little time, but in that time they have been quick to grab our money whilst continuing to pay vast sums on the public pensions, with only a token reduction.

What I am suggesting is that if they dont get a grip, not only will anyone with money bale out those in the middle (like me) will realise its pointless saving, its best to spend it before they grab it.

World govts are engaging in th eveyr old tactic of reducing debt by inflating it away, so the current generation of savers have that extra burden.

Were the riots in the middle east and elsewhere by criminals. ?

No. Same in Greece... criminals no.

I am suggesting we have watered down the concept of Britishness so much that the next generation will have no sense of fair play or reluctance to riot. They will simply riot.

Perhaps Cameron will do a thatcher and send the cop boot boys north to do over some miners in Barnsley, or do a Churchill and send the army in to shot a few Northerners.

No more likely the riots will stem from the same places as they have recenlty.

The authorities were shocked rigid, and would like to believe its all kids raiding Currys and Sports Direct.

The public sector pensions should be slashed to the same level as private - i.e. zero. That would save the huge (huge) percentage of our tax that we pay to feed that system.

Our texes could then be used to reduce the debt. At present the debt is just growing, and only the rate of growth has been slightly reduced.

Usually a boost to the economy is given by deliberately starting a war(certainly in usa and also more and more the UK) We have two on the go already, but are working towards another with Iran.

Why should some people retire at 50 or 55 with a huge pension when most of use are working to pay that pension, and get nothing when we retire?

Greece will be a good pointer of how people settle down on £500 a month with no future prospects. Then we can see how Portugal and Spain do with the 50% youth unempolyment.

Perhaps the latin temperament will be employed on flamenco dancing rather than trouble. I am sure they thought so in 1935

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Feb 19, 2012 at 18:17

There you go a third of your texes to provide a life of leisure for the few

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Feb 20, 2012 at 08:32

Banjofred, we are now singing off the same hymn sheet. The unsustainability of public sector pensions, and the greedy ignorance of those who fight against their reform, are clear to the majority of us who have assumed personal responsibility for our retirements.

My reference was to the UK riots, subsequent investigation of which confirmed the proportionally young age of the rioters, and the motivators as being greed, excitement and peer pressure within a gang structure (within London in the case of the latter). Had any competence been shown by the senior Met officers in either numbers of officers on the ground, or the manner of response by those officers the riots would never escalated and suffered from the contagion that followed.

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Michael Thompson

Mar 22, 2012 at 13:15

Is there a SIPP provider that invests in wine investment funds or any other fine wine investment vehicle?

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Mar 22, 2012 at 13:22

Michael Thompson

I would imagine there are such Providers; assuming that the investment is in the form of a structured product and its not direct holding.

Best thing to do is send the details of the investment to your provider of choice to have a look at.

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Hyman Wolanski (MD Sippchoice)

Mar 22, 2012 at 13:45

Yes, there are such providers but they're not cheap. Firstly, you'll need a SIPP that offers a wide range of investments and these SIPPs have higher charges than simpler 'platform-based' SIPPS. Then the SIPP provider will probably need to carry out a considerable amount of due diligence on the proposed investment (and satisfy itself that it is a suitable investment for your SIPP) and there will charges for this too.

I've been trying to avoid saying that, of course, the SIPP provider will need to have satisfy itself as to the liquidity of the proposed investment but I couldn't stop myself. Sorry.

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Mar 22, 2012 at 13:55

@ Hyman Wolanski

"and there will charges for this too."

Its probably worth pointing out that there are providers out there who do not charge for carrying out due diligence on investments.

Its a case of shopping around.

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bill blayney

Apr 24, 2012 at 20:43

can anyone tell me where to find the best fixed term deposit or bond for a sipp

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David N Tate

Apr 25, 2012 at 12:49

The best rate I have obtained for SIPP funds is 3.35% fixed for 12 month from Punjab bank. I have other deposits mostly within Financial Services Guarantee Scheme limits, ranging from 2% to 3.3%

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Apr 25, 2012 at 13:03

Investec Bank - 3.35% - 12 months

Allied irish bank - 3.15% - 12 months

Bank of Baroda UK - 3.25% - 12 months

Punjab National must be a new player to the SIPP market (which is nice to see)

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bill blayney

Apr 25, 2012 at 13:04

thanks could i ask if your fsa guarantee covers investments@ 50k or is it covered as the bank deposite @85k i seem to be getting different answers so any info would help

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Apr 25, 2012 at 13:11

£85k for deposits.

The £50k relates to investments where the firm is in default

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bill blayney

Apr 25, 2012 at 17:11

thanks for the help i am knew to this investing lark but i presume the exotic sounding banks all come under the fsa

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Oct 01, 2012 at 16:57

Sinic/ Blair / Brown advantage ?- both become rich/ read the allowances they claim as ex-ministers on top of fee income in telling how they did it.

Laws back in government-Blair rules the world -telling it how to behalf- I regret to say I agree with "frustrated" banjo views. The

system has broken/ and the mechanics too busy on their own "vehicles".

I have lived through war/recession - we live in wonderfull times technically- but instead of enjoying the freedom it creates/ we become peasants again.

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Richard Garbutt

Oct 22, 2013 at 12:42

Hi ....

I am having a hard time deciding where to invest my money in my HL Vantage SIPP .

I have recently set up a SIPP with Hargreaves Landsdown , and just as a little taster deposited 1K in the HL multi manager special situations trust as I believe in the long term this fund could be a great choice. As I have little confidence and no nothing about investing , I thought I would just monitor this fund for a year or so before I start investing seriously.

One of the main reasons for the SIPP, is that my accountant recommended I pay 30k -40k a year into it, so that I may use the tax relief to lower my gross income, hence paying less tax and having something left in a pot for when I retire in 10/15 years at the age of 50/55. The amount of money is quite high so as you can see, that's the reason why I am very nervous about doing so.

Any thoughts or comments of which way you would go, and funds you may opt for in my situation would be greatly appreciated.

Thanks and best regards....


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Mar 03, 2014 at 10:32

The State Pension is changing, and is becoming a straight weekly payment. Just over £8k per annum. If you push your retirement age back, each year will gain you around £480 a year onto your £8k, so work another three years after your pension start date, and get the £1400 pa, plus money for extra contributions, and the extra pay too which may also mean extra pension in a work scheme as well. I reckon £10k state pension, £10k SIPP income, £10k from one pension already gained in an earlier career and then the rest from a work pension on top of that, which will put me over the £32k 40% threshold.

More than enough to live on unless you're extremely profligate.

The thing is, I'm only 46 but am planning now. A stakeholder plus a share holding currently on the back boiler but gaining will go into a SIPP in the next five years. I'm at home with the kids and when they leave will take another career. This will net me the extra pension. Once my pension is set, I do the drawdown, currently 25% and then live a LOT.

If you want to leave something to your kids, buy them little houses and live off the rentals until you retire, then give them the houses and hope you'll live another 7 years to avoid the tax knock. If you worry about the income from the houses while rented before you do that, put it in your SIPP or into ISA's. Just avoid the £32k limit per annum pure income.

You can do a lot worse for your kids than give them a monthly income / a place to live. As they leave, downsize and buy houses with the remainder. it's what I'm going to do. Each downsize gains me another £8k income from rent.

I don't want to leave owt for my kids but the houses, and dosh for a HUGE party after my (already paid for) funeral. It's a lot more than I had. They've already had the pension talk and investment advice.

Does anyone know, in these days of rotten annuity rates, how much I'd need to invest to get £10k SIPP income from an annuity?

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