Saturday, September 3, 2011

Self Invested Pensions Explained

By Dominic Watson


When you are in that frame of mind where you are taking into consideration the future but as yet haven't got your own pension then you can be considering self invested pensions. These are best looked at as sort of do-it-yourself pension that could make it easier to take your existing investments and turn them into one single personal pension pot.

Self Invested Pension Plans (or SIPPS for brief) offer you greater flexibility and overall power over your financial situation. They enables you to choose from many diverse investments, unlike other pensions, but on the bonus side they have the same tax features of other pension plans.

Recent adjustments to legislation mean that self-invested pensions won't be merely aimed towards individuals who have higher incomes. Originally these pension products were targeted towards those individuals with a pension fund of 200,000 or higher, but nowadays even those without a steady source of income can contribute as much as 3,600 in to a SIPPS pension.

kind of pensions might be useful to people who've a lot of different pension schemes at the moment but would rather bring them together to make one easily manageable pension wrapper which will hopefully be their retirement fund. Being in a position to transfer-in any current and pre-existing pension plans definitely makes the SIPPS pension an attractive choice for many people, since it provides them with the flexibility to select their investments and to have total control over their assets.

Much like getting into any major financial change, most people will seek financial advice before beginning up self invested pension plans. By seeking this expert knowledge and advice they can get access to a whole range of suitable investments and pension plans that can be brought together to make the foundation of a SIPPS pension. It is advisable to get financial advice before proceeding with these plans because there have been many changes in legislation concerning pensions over recent years.

Even though it might feel as though retirement is a long way down the road, initialling the plans now and sorting out financial affairs like organising self invested pensions you will make certain that when it comes to it it is possible to retire comfortably.




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