A SIPP is a UK based, HMRC person pension plan that allows individuals greater control and investment flexibility. Being based in the UK, SIPPs must adhere to the investment rules stipulated by the trustee and HMRC. Individuals have complete flexibility over their retirement income under flexible draw-down rules.
SIPPs are the most flexible pensions in the UK for investments. Clients, amongst other assets, can hold ETFs, ETCs, Mutual Funds, Stocks, Bonds & Commercial Property. Often this scheme, as it says in the name, is used by clients wanting to have control over their investments.
Unless there is a reason to allow early retirement (ill health) than all UK pensions can be taken from the age of 55.
Jurisdiction - United Kingdom
All SIPPs are held in the UK. The UK is one of the most regulated jurisdictions for financial services in the world. The UK is a self-governing state, bolstered by its current membership to the EU. Every pension scheme in the UK is independently regulated by the FCA giving clients protection and peace of mind.
Advantages: large amount of double taxation agreements globally, low cost, flexible investments, high levels of compliance.
Disadvantages: tax on death after age 75, lifetime allowance tax charge on pensions, cannot accept transfers from pre-aday Ipps.
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Investment returns are not guaranteed and can go down as well as up.