Learn about SIPP (self invested personal pension plan)
and how to retire rich...

A SIPP (self invested personal pension plan) is a personal pension arrangement approved by the Inland Revenue under the Income and Corporation Taxes Act 1988, in this website it will be referd to as a DIY Retirement Fund.

SIPPS, or DIY Retirement Funds are designed for investors who want maximum control and flexibility over their pension. As a consequence it is totally independent with no ties to any fund manager or insurance company, and has wide investment powers to meet each individual’s personal circumstances.

The principal features of a UK DIY Retirement Fund are as follows:

* Total freedom on the payment of contributions
* flexibility on the choice of investments
* the ability to select your own fund manager or managers
* early retirement irrespective of whether you remain at work
* Penalty free transfers
* Staggered or phased retirement
* Income drawdown
* Efficient administration
* Transparent fee structure
* Significant tax advantages
* Inheritance tax planning possibilities

Here are the investments permitted within a UK DIY Retirement Fund by the Inland Revenue and include:

* Stocks quoted on the UK Stock Exchange including securities on The Alternative Investment Market
* Stocks and shares traded on a recognised overseas stock exchange
* Shares in Open Ended Investment Companies (OEICs)
* Futures and options traded through a recognised exchange
* Unit trusts and investment trusts
* Insurance company managed funds and unit linked funds
* Deposit accounts with any authorised financial institution
* Commercial property or land
* Secondry Market endowment policies
* FSA recognised offshore funds
* Trustee borrowing from an authorised institution purchase of commercial property

A SIPP allows a pension to be drawn directly from the funds held within it. This facility is called income drawdown and enables the continued control and management of the scheme’s assets whilst benefits are being drawn.

These benefits are very flexible and can be changed on an annual basis within guidelines set down by the Government Actuary’s Department.

A SIPP will also enable you to draw benefits in tranches under an arrangement known as phased retirement.

To find out more about how to go about setting up a UK DIY Retirement fund visit SIPP