There’s no denying the value of a pension.
Building a decent fund today can make a real difference to the life you live tomorrow.
But some pension plans offer a limited choice over where your money is invested.
And you may be restricted to the funds offered by a single provider.
There is another way.
A SIPP is a type of personal pension that offers you access to a wider choice of investments than some other pensions.
It can give you greater control over your how your retirement savings are invested, to help you achieve your retirement goals.
So what does that mean in reality?
Here’s your simple 5-step guide:
With a SIPP you have a huge range of investment options to choose from – including unit trusts, investment trusts, bonds, and shares.
So you can build a portfolio to suit you.
You’ll enjoy the same great tax benefits with a SIPP that you get for other pensions.
Because your SIPP is effectively a tax wrapper, your investments can grow free of income tax and capital gains tax.
And the taxman will top up any contributions you make up to certain limits with tax relief – which can give your pension pot a real boost.
You get the first 25% of the pension back tax-free too, with the balance then treated as income and taxed according to your personal circumstances.
Just bear in mind that pension and tax rules can change, and their effect on you will depend on your individual circumstances.
Keeping tabs on your investments is easy, with everything in one place, and 24/7 online access allowing you to track performance and manage your portfolio wherever, whenever.
But what if you’ve got existing personal or workplace pensions?
If you’re an active member of other pensions, you can run a SIPP alongside them.
If they are in respect of former employments, you can bring them together in one place.
You might want to take independent advice as you weigh up the benefits and drawbacks of doing so.
And, if they choose to, your current employer can even make contributions to the SIPP too.
SIPPs aren’t for everyone.
A SIPP could be right for you if you’re comfortable choosing and managing your own investments and keeping track of the relevant pension allowances.
Remember the value of investments held in pension arrangements can fall as well as rise, and you could get back less than you invest.
If you're unsure, please seek independent financial advice.
To find out more about how a SIPP can empower you to take control of your pension, simply search ‘Barclays SIPP’ to learn more.