Is a SIPP for me......?

C_Mababejive

AS HL customers will know,they are very good at sending out information and marketing stuff most of which is quite interesting.

I keep reviewing the possibilities of SIPPs and I'm not sure if its worth my while.

OK the Government gives tax relief but then you can only have a max of 25 % as a lump sum and then buy an annuity with the rest with the income being taxable.

So why entrust your wad to someone else?

What if you take your 25% and then die a year later? Who keeps the money that you invested?

I am at the very upper edge of the 20% bracket ,have been paying into a FSPS for more than 30 years and my contribution rate is about 3%

Further to that,and regarding the amount i have invested in my company FSPS,does the law allow me to request my company to value my pension pot and transfer it to a provider of my choice?

I'm just thinking that a good proportion of the pension i would be paid might be paid out of earned income from the mass of the pension scheme so that they were effectively retaining all or most of my capital whereas if i transferred it and bought loads of shares, i could live off the interest AND still have my capital plus possible appreciation?

Ta

dunstonh

OK the Government gives tax relief but then you can only have a max of 25 % as a lump sum and then buy an annuity with the rest with the income being taxable.

You dont have to buy an annuity if you dont want to.

So why entrust your wad to someone else?

Its not different to other tax wrappers. You choose where you invest

What if you take your 25% and then die a year later? Who keeps the money that you invested?

Death before commencement and your beneficiary gets the full fund value. Death after commencement (assuming 100% commencement here) and your beneficiary can continue the pension income subject to their income tax rate or take the lump sum value with a tax charge to it (which largely equates to taking back the tax relief)

C_Mababejive

So if i bought into the SIPP arrangement,is there any way i could access the full amount of my funds upon retirement? for example,could i simply bed and sipp existing shares or buy new shares within a SIPP wrapper..?