Take control over what is rightfully yours by investing in SIPP
Consolidate UK Pensions earned through previous employment into one tax efficient, flexible, cost effective SIPP (Self Invested Personal Pension)
What Is a SIPP?
A Self Invested Pension Plan (SIPP) is a pension plan that allows individuals to make their own investment commitments. More simply put, SIPPS are essentially home-made pension plans. A SIPP works similarly to a personal pension plan but with heightened flexibility that gives investors more control to choose and manage their accounts. SIPPs are tremendously tax-efficient and both employers and spouses can pay into a SIPP. SIPPs offer a more pliable way to plan for your future.
A SIPP allows investments in stocks and shares, investment trusts, insurance funds, commercial property, ground rents, open-ended investment companies, and more.
- Obtain CETV (Cash Equivalent Transfer Value) of your existing pensions (our advisors can help you with this even if you do not have policy numbers or even know where the pension is held).
- Complete an application to open a SIPP with a regulated Trustee.
- Trustee opens an account on preferred terms with an Offshore Investment Platform or Portfolio Bond. Depending on your circumstances your advisor will suggest the best solution.
- Transfer cash to new account.
- Discuss with your advisor a strategy based on factors such as risk appetite, investment time horizon income needs and tax planning.
- Select Underlying investments through a low cost Open Architecture Platform (Equities, Bonds, Funds, ETFs)
Whatever your risk tolerance & interests, your advisor will help you select the investments for your portfolio. Some examples include:
Our SIPP advisors
SIPP and Pension Transfers
For example, if you contribute an investment of £2000, the government would provide 20%, £400 as tax relief. Taxpayers in higher-income brackets can claim higher tax relief as a percentage of their income, up to 45%. Consistent contributions to a SIPP is a great way to safely and efficiently plan for your future.
Extracting funds early will result in taxes at the pension holder’s marginal rate. Luckily, the first 25% of the money withdrawn from a SIPP can be removed tax-free. After that, any extracted money will be subject to taxation.
With our SIPP option, you can invest in as little as $250 per month with term lengths ranging from between 5 and 20 years with little to extra charges, making Tenzing one of the best SIPP firms on the market.
Through Tenzing, you’ll have the flexibility to adjust your contributions, withdraw, or pause payments at any time. Contact an advisor and discover first hand why Tenzing is the best option for investing in your future with a SIPP.
So, should you transfer your final pension to a SIPP?
This decision is conclusively up to you. Consider investment goals, savings horizon, and both current and future financial obligations before committing. However, with the right investments, opting for a final pension transfer can without a doubt work to your advantage and put you on track for the future you desire.
Through a SIPP’s tax relief, if you contribute £800 incrementally, the government would essentially top it up to £1000. Income earners that pay higher or additional tax rates will be topped up by the government and able to claim back more on their self-assessed tax returns.
The total tax relief will depend on your personal income.
The fate of your pension and investments will ultimately be up to you. When opening a SIPP you will be given an option to name beneficiaries to receive the value of your pension in the case of your passing. This can be spread across several beneficiaries as a lump sum or paid out through installments to provide the beneficiary with financial security over a long period of time. Inheritors who collect a pension from an account holder age 75 or younger will not be subjected to additional taxes, whereas marginal tax rates will be paid by the beneficiary if the account holder was over the age of 75 at the time of their death.
Speak with an advisor
Your future self will thank you
- Savings needs analysis
- See savings illustrations from multiple providers
- Learn about the funds
- Ask questions
From initial consultation, we’re here to answer your questions transparently, including all the key features and things to look out for.
Or simply call us to get started
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