Pensions
Self Invested Pension Plan (SIPP)
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See below for a number of different SIPP retirement options that we offer:
SIPP – Unsecured Pension (USP)
In a SIPP, you can choose to start taking your pension benefits from 50 years (or 55 from 2010) either through an Unsecured Pension (USP) or by buying an annuity. A USP is one of the most flexible retirement options. It gives you the ability to use your pension assets to provide a regular income, while also providing the potential to further grow your overall retirement pot. If you choose the USP option, you can take a tax-free cash lump sum of up to 25% of your pension fund and continue to draw an income until you reach your 75th birthday.
SIPP – Alternatively Secured Pension (ASP)
Once you reach your 75th birthday you must either purchase an Annuity (if not already done so) or elect to move into Alternatively Secured Pension (ASP). If selecting ASP, you must take an income from your pension funds from your 75th birthday onwards. You can opt to continue to receive an income until death or purchase an Annuity at any point.
ASP has many similarities with a USP in terms of allowing you to continue to draw an income, but the maximum income available is less than in a USP and you are also required to take a minimum level of income set by HMRC.
The SIPP-ASP is currently available only to clients in ASP but we intend to offer it to all clients shortly.
SIPP – Protected Rights
Benefits built up in a scheme which is, or was, contracted-out of the State Second Pension or its predecessor, the State Earnings Related Pension Scheme, can be transferred into a suitable scheme where they become known as Protected Rights. The term ‘protected’ does not mean that the funds are protected from investment risk. Instead, it means that if you are married when you retire or die, the type of pension that must be purchased must include certain spouse’s benefits and must include certain guarantees on death.
Download Key Features and Terms and Conditions
SIPP – Non Protected Rights
All Pension Funds excluding those built up from government contributions as a result of opting out of State Second Pension.
