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AisaDirect Ltd, an Independent Financial Adviser authorised and regulated by the Financial Services Authority in the UK only.
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This website contains information which may or may not be applicableto your own situation and circumstances.
Any information or advice on this site does not constitute a personal recommendation. If you have any doubts as to whether a product or service is suitable for you, please seek independent advice.
SIPP’s and USP’s
Self-Invested Personal Pensions (SIPPs) are designed for people who want to manage their own fund by dealing with, and switching, their investments when they choose. They may have higher charges than other personal pensions and are largely in-appropriate if you do not intend to make use of the extended investment facility or want to purchase a commercial property.
Many people believe SIPP’s are cheap (with low charges). However, that is to ignore that the funds purchased also have charges that add to the charges considerably. A standard packaged pension for example is explicit with all charges including those of the investment funds.
SIPP is only more suitable for large funds in excess of £150,000 and for people who are experienced with investing., or who want a commercial property. They may also be suitable for those with funds who are approaching retirement and who wish to consider a USP
Unsecured Pension (USP)
If you wish to know what a USP is then Click Here.
The minimum amount of money left after tax free cash has been taken should be in excess of £100,000 in order to make the additional charges in the SIPP worthwhile. However, many packaged USP providers also make large charges and that is why it is worth considering a SIPP sometimes. The new alternative is the Variable Annuity which has a charging structure somewhere in between a conventional annuity and a USP.