Pensions

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13. Personal pensions with greater investment scope

For the dedicated investor there is a special type of personal pension which offers greater investment flexibility.

If you are paying about £10,000 or more each year into your plan it is well worth considering a self invested personal pension (SIPP) which allows you to appoint your own investment manager (for example, a stockbroker) or even run the fund yourself.

The beauty of this arrangement is that you can change your investment manager without disturbing the underlying administration and so cut out a significant layer of expense.

SIPPs are also good news for professional practices and partnerships (Schedule D taxpayers) who cannot join an occupational scheme. It is possible to set up a group SIPP which may enable you to negotiate lower charges and achieve a greater degree of investment control on a collective basis. You can even use the SIPP fund to buy new property for your business.

The choice of investments is very wide and includes the following:

• Stocks and shares (eg equities, gilts, debentures) quoted on the UK stock exchange and including securities on the Alternative Investment Market;
• Stocks and shares traded on a recognised overseas exchange;
• Unit trusts and investment trusts;
• Insurance company managed funds and unit linked funds;
• Deposit accounts;
• Commercial property.

1. Don't rely on the state scheme! 2. Private pensions: your most tax efficient investment 3. Company pension schemes 4. How to top up your company pension 5. Factors when topping up a company pension 6. What if you change jobs? 7. SSASs for small companies 8. Personal pensions 9. Value for money personal pensions 10. Aim for a balanced pension portfolio 11. How much can you invest in a personal plan? 12. Choosing a fund 13. Personal pensions with greater investment scope 14. Use your plan to get out of S2P 15. Do you need an adviser? 16. Conclusion

• Pension Power