A SIPP, or a Self-Invested Personal Pension, is a specialised pension scheme available in the United Kingdom. Unlike traditional pension plans, SIPPs offer individuals a much broader range of investment options and greater control over their retirement savings.
The key feature of a SIPP is that it offers a level of autonomy and flexibility that traditional pension plans do not. This means that individuals can tailor their investments to align with their risk tolerance, financial goals, and investment preferences.
On our platform eligible clients can make use of all the traditional InvestEngine products such as Managed Growth Portoflios, Savings Plans, Rebalance, AutoInvest, and more, all within the pension "tax-wrapper".
Moreover, SIPPs come with tax advantages. Contributions made to a SIPP are typically tax-deductible, and investments grow tax-free. However, there are limits on contributions and restrictions on when you can access your funds, usually linked to the age of retirement.
In summary, a SIPP is a versatile retirement savings vehicle that empowers individuals to take charge of their pension investments, offering a diverse range of asset choices and tax benefits while adhering to pension regulations and rules in the UK.
Further information on SIPP terms and what they mean can be found here.
Please note that InvestEngine does not intend the above to be tax advice and you should speak to your own tax adviser or HM Revenue & Customs to confirm the tax implications of investing your cash. InvestEngine will not be responsible for any action or inaction as a result of this information.