IFA, P&P Invest
The Scottish Widows Sipp is closer to a personal pension than a Sipp. It is perfect for the retail distribution review landscape because it provides a platform to construct portfolios for clients using all available funds in the marketplace.
It is a cost-effective way to invest without the complexity and trustee charges of a bespoke Sipp. That means it is cost-effective for clients with £150,000 and above. Below that figure there are cheaper alternatives, which are less sophisticated.
A true Sipp is defined as a pension with an individual trustee and provides the means for third-party investment, everything else is a personal pension labelled as a Sipp.
For example, a true Sipp is what you would use for commercial property investments, but that’s not the mainstream choice for most people.
The suitability of pensions depends on a client’s attitude to risk, but I would say the retirement account is suited to assets up to the £1 million mark.
I have 60 clients in the Sipp, representing about £60 million of assets.
The charges are very low. For a £50,000 plan, the charges start at 0.35% and decrease as pension increases in value. This product costs only slightly more than a stakeholder pension.