DIY Investor Magazine
/
2015 Issue
53
A SIPP opens up a range of options for all age groups
with differing needs such as: investing for children
by parents, grandparents or guardians; for longer
term growth with investment flexibility; for pension
consolidation; for flexibility in retirement and for
passing on wealth to the family.
But there are also disadvantages to be taken
into account such as:
•
The risk of making investments decisions
•
Costs can be expensive for low value
SIPPS unless the right plan is chosen
•
SIPPS can be deemed to be complex
•
The potential for fraud and pension
liberation
•
The potential for mis-selling of SIPP plans
which are unsuitable
•
The risk of choosing the wrong benefit
option unless the individual takes
professional advice
In summary, therefore, in the right circumstances
SIPPS can provide a lifetime solution but may not be
appropriate for everyone. Remember, investments are
risk-based and their value and any income generated
can fall as well as rise. For those where individual choice
is key, the SIPP market remains positive but please
bear in mind not all investments that can be held within
a SIPP have the protection of the Financial Services
Compensation Scheme (FSCS) and where there is any
uncertainty about a financial services product or an
investment, professional advice should be sought from
a suitably qualified and authorised financial adviser.
This article has been produced for generic information
purposes only and does not constitute advice. It should
not be relied on in making any decision and you should
check that any product you invest in is suitable to your
specific circumstances.
To find out more or to open your SIPP account please
click here or visit:
quoting DIY Investor
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