A SIPP, or a self-invested personal pension, is a UK-registered personal pension scheme that is tax efficient. SIPPS are available to both UK residents and expatriates. Existing pension plans can be transferred to a SIPP.
The SIPP pension scheme was introduced in the UK’s Finance Act 1989. It gives you a greater degree of freedom than any other pension, especially compared to traditional pension schemes. SIPPs may also afford increased flexibility at retirement.
SIPPs can be invested in mutual funds, commercial property, corporate bonds and government bonds, Exchange Traded Funds (ETFs), cash deposits, equities, unit trusts, shares and more. SIPPs permit you direct access to stocks and shares, both in the UK and internationally.
A SIPP is typically chosen because it can give you additional investment options or increased flexibility at retirement. It is a tax efficient method where the government adds to your pension relief based on your marginal rate of tax.
All SIPPs are monitored by the UK’s Financial Conduct Authority, making it an advantageous option for UK-connected individuals.
Regardless of where in the globe you reside, if you are a UK resident or a Crown employee and under 75, and if you have a spouse or civil partner who is working overseas, you are eligible for a SIPP.
You may transfer an existing pension plan into a SIPP but there may be a large charge deduction if you do.
The government adds 20% to your pension in tax relief. The higher-rate tax payer usually claims more tax relief, depending on your circumstances.
If you were a resident in the UK at any point during the past five tax years, or when you became a member of the SIPP, you may qualify for tax relief. Living overseas will limit investment options available.
You can have as many SIPPs as you want but remember that there are annual and lifetime limits for saving tax efficiently in your pensions.
The SIPP gives a Pension Commencement Lump Sum (PCLS) of up to 25% of the value of the pension fund. However, this is subject to the available Lifetime Allowance. The balance of the fund may be in line with the UK’s flexible benefit regime.
Payments above the 25% PCLS are subject to income tax while the 25% PCLS is not. If the pension scheme member lives overseas, he/she may have pay tax where they reside. The pension member may apply to pay tax in their country of residence where a treaty exists between where the member resides and the UK.
A SIPP permits mutual funds, equities, corporate and government bonds, cash deposits and UK commercial property.
Yes. A SIPP can receive transfers from both UK-registered pension schemes and overseas pension scheme.
One or more pensions can be consolidated within a SIPP.
No. SIPP benefits may only be accessed beginning age 55.
Yes. We recommend that individuals should seek appropriate advice about their pension fund.
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In today’s complex market and regulatory environment, we understand the continued need for innovative investment solutions and implementation expertise.
Deep bench of expertise
We draw on specialized experts including actuaries, risk managers and strategists. We also engage investment professionals spanning asset classes, including credit and rates teams with, on average, over a decade of experience.1
Strategic insights and knowledge transfer
We address our clients’ key challenges and provide timely insights on a variety of topics relevant to the pension landscape, including real-time viewpoints on market and regulatory changes, liability management perspectives and corporate finance.
Holistic implementation approach
We take a holistic approach to portfolio management and provide tailored investment strategies, with a highly curated investment approach and fiduciary mindset.
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Plan-specific considerations, including:
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Examples of Our Partnership with Clients
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