Many clients with larger defined contribution pension funds choose a Self Invested Personal Pension (SIPP) “wrapper” because of the control it allows over the investment of their funds and the range of assets that can be held within it.
While pension plans provided by life insurers or employers usually offer a selection of funds from which the member can choose, a SIPP is able to invest in any asset permitted by the regulator, and can thus be used as a vehicle for a discretionary investment management service. All of Clarion Investment Management Limited's funds and investment portfolios can be held within a SIPP.
SIPPs are particularly popular with business owners because these schemes are also able to hold commercial property directly, rather than through a fund, and to borrow in order to do so. Thus, many SIPPs are used by entrepreneurs as vehicles through which to purchase their commercial premises.
In general, a SIPP is able to hold a broader range of investments than is permissible for other forms of HMRC-approved pension scheme.
Their flexibility to hold appropriate assets to match an individual’s circumstances means SIPPs are commonly used when the member has chosen to enter drawdown and withdraw a pension income direct from their fund rather than purchasing an annuity from a life insurance company.
To find out more about SIPPs please call Clarion Wealth Planning’s experienced, highly qualified team on 01565 653804 or send us an email.