An Introduction

Self Invested Personal Pensions (SIPPs) were first introduced in 1989 to give individuals planning for retirement greater control over their pension fund and where it is invested. A SIPP offers the widest range of pension investments including Cash, Equities (both UK and foreign), Gilts, Unit Trusts, OEICS, Hedge Funds, Investment Trusts, Real Estate Investment Trusts, Commercial Property and Land, Traded Endowment Plans and Options.

Investing Within a SIPP

  • A dedicated adviser will understand and assess your situation to enable us to provide advice on trading equities within your current SIPP, execute your trades, manage administrative matters and help you achieve your investment objectives.
  • We will bring the insight and research directly to you and only on the areas that you are interested in. This allows your decisions to be made quicker and easier without the need to sift through research that doesn’t interest you.
  • Tax efficient.
  • Independent expert advice on a limited range of investments within your SIPP.
  • Clients have access to our full advisory stockbroking service it is simply their investments that are wrapped within their SIPP in order to gain the tax benefits in place.

SIPP Risks

  • Risk to capital due to the underlying investments held in the SIPP.
  • Individual pension investments are subject to fluctuation and you may realise less than the sum invested in your SIPP.
  • Future legislation may change the tax treatment of pension investments and tax wrappers which could affect your SIPP.

FAQs

Q. What are Self Invested Personal Pensions?

Self Invested Personal Pensions (SIPPs) were first introduced in 1989 to give individuals planning for retirement greater control over their pension fund and where it is invested. A SIPP offers the widest range of pension investments including Cash, Equities (both UK and foreign), Gilts, Unit Trusts, OEICS, Hedge Funds, Investment Trusts, Real Estate Investment Trusts, Commercial Property and Land, Traded Endowment Plans and Options.

Q. Can anyone have a SIPP?

Yes, any UK resident including children can make contributions into a SIPP.

Q. Can I contribute to a MB Capital SIPP alongside other pensions?

Yes you can. Although you should be aware of your personal contribution limits and the annual and lifetime allowances.

Q. What is pension carry forward?

There is a £40,000 annual allowance for pension contributions. However, carry forward allows you to contribute more if you have any unused allowance in the last three tax years.

Q. Can I withdraw my money at any time?

No. Once invested in a pension you cannot normally access the money until age 55. The minimum age will rise to 57 in 2028 and then in line with increases in the state pension age, remaining 10 years below (for example if the state pension age rises to 68, the minimum retirement age will rise to 58).
When you withdraw money from your pension, normally up to 25% is tax free and the rest taxed as income.
There is also no obligation to withdraw money from a pension. You may be able to leave your pension invested, never draw an income from it and pass it on to your heirs.
Like all rules, these may change in the future. The exact treatment of any benefits from your pension will depend on your circumstances.

Q. I want to take Tax-free cash but do not need / want to take a taxable income from the rest of the funds. Is this possible?

Yes. You can do this by applying for drawdown – when you apply, specify that you do not wish to take an income. This allows you to access the tax-free cash without immediately taking any taxable income, and you are able to start drawing an income at any time in the future.

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