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Planning for the Future: How a SIPP Could Help to Secure the Retirement You’ve Dreamed Of

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On our quest to forge a successful life and career, it’s imperative to plan ahead: we think of where we want to be, who we want to spend our time with, and how to achieve the things that we desire. These dreams drive us forward us every day, rallying us with the thought of a better future whenever we feel down.

Our fantasies rarely extend beyond our working life, yet if we took the time to look into the far distant future, most of us imagine our retirements as golden years. They seem to offer the perfect opportunity to indulge in life’s pleasures, to do all of the things that we’ve never had time for: holidaying in the sunshine, taking up a new hobby, creating beautiful memories with the friends and family we adore.

A basic rate pension simply can’t offer you the lifestyle that you’re envisaging, so it’s very important to start considering your pension options here and now. In particular, you might want to take a look at self-invested personal pensions (SIPPs) – the ideal choice for delivering a life of luxury in your later years.

So, why should you consider them? Here are just three important reasons…

Flexibility

One feature that marks SIPPs apart from their contemporaries is the flexibility that they offer investors. When you choose to sink your funds into this sort of retirement plan, it is entirely down to you to decide what to invest in, how to spend the money you save, and when you want to access it.

Control

This flexibility has the added boon of offering investors an unparalleled degree of control. The choice of where to place your funds rests in your hands and, as a result, you’re the one that determines how much there is in the bank when it comes to retiring.

Tax Benefits

The greatest benefit offered by SIPPs is, arguably, the many tax advantages attached to them, foremost amongst them tax relief. For basic rate taxpayers, 20 per cent is added to your account every time you invest, meaning that setting aside £8,000 would see you net £10,000 upon your retirement. For higher and additional rate taxpayers, the government is even more generous, offering tax relief of 40 and 45 per cent respectively. In addition, your SIPP is free from income and capital gains tax, and can be passed to your heirs tax-free upon your death.

If you’re beginning to consider your retirement, it might just be the perfect solution for you.

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