How it works

A Self invested pension (SIPP) or the company sponsored version the Small self administered scheme (SSAS) like ours are set up under trust law.

We have made each member the trustee of the scheme and the trustee with responsibility for choosing the investments (or appoint an investment manager to do this for them).  This process of giving you the full legal control of the investments in your own pension is what allows you the choice and flexibility.

We do however try to ensure that any investments you do select will not create a tax charge from HM Revenue & Customs as there are some investments that cause high penalties such as residential property or art & antiques.

You have your own pension bank account into which transfers from other pension plans can be made and investment monies paid in and out.

When you want to take benefits (currently the minimum age is 55) you can take a tax free lump sum of up to 25% of the fund and then take taxed income from the remained either by purchasing an annuity or using income drawdown to take income from the fund each year.

Please note that early access to pension funds before age 55 – pension liberation/unlocking is not allowed under our plans and usually has very bad consequences with a high fee of 25-30% being charged followed by an eventual tax charge of 55 – 70% leaving you with little or no money.

Remember fees are charged at outset and every year.

Also to take benefits usually the investments have to be in liquid form and it is up to you to monitor this.