All the tax advantages of a pension plus more investment options
A Self-Invested Personal Pension (SIPP) is a special type of personal pension. As well as being tax efficient and offering flexible benefit options, you can choose to invest in a greater range of investments than a personal pension. We have selected a specialist provider, Barnett Waddingham, to offer you a SIPP.
You pay into the plan, basic rate tax relief is added from the government which is invested to provide you with a private pension 'pot' (fund value). Then you use this pot of money to take benefits during your retirement. And, from the minute you start investing, any growth is free of capital gains tax and UK income tax.
Most personal pensions let you choose from a range of funds from one or more fund managers – with a Barnett Waddingham SIPP, you get more choice over your investments. There is a wide array of options available, from commercial property and farm land to individual shares and bonds, including various NS&I products, as well as a range of funds managed by us and other managers. The choice is yours.
There are several ways to take money from your pension pot, and you can start doing this from the age of 55 (57 from 2028). However, no matter what decision you make, you don’t have to stop working once you’ve started taking your benefits – it’s up to you.
If you die before the age of 75, any money left in your pension pot can be passed on to your beneficiaries usually tax free. If you die after the age of 75, any money you pass on will be subject to income tax when withdrawn.
An NFU Mutual Financial Adviser is on-hand to advise you how this all works.