SIPPs are a type of personal pension designed for people who want to manage their own fund investments. Most SIPPs allow investment in a very wide range of investment funds and investments such as commercial property, offices, shops or factory premises - depending on your objectives and how much risk you are prepared to take.
If you wish to get an idea of what you need to contribute to a pension please go to the FSA Pension Calculator.
What the FSA Say
The FSA says: “Your retirement can last 20 or 30 years – maybe longer, so you need to be prepared – you may be living on your retirement income a long time. Try to think about how much income you’ll need. Work out how much you’ll want to spend (using today’s price levels). If you decide to use a pension to save for your retirement, it may be a good idea to start one as soon as possible. If you put it off by just a few years, you could end up with a much smaller pension.
- Find out if your employer offers a pension scheme and whether they contribute to it.
- You cannot take your money out of a pension until you are at least 50 (this is going up to 55 by 2010).
- Many schemes give you a statement each year with details of your possible income at retirement.”
Member of the Association of Member-Directed Pension Schemes
Authorised and regulated by the Financial Services Authority
(SIB No: 133515)