If you’re looking for simplicity and lower admin fees, ‘execution-only’ lite SIPPs could be for you. Some may just offer a limited number of predetermined funds. You’ll normally find listed equities, Exchange Traded Funds (ETFs) and bonds but not things like unlisted equity or commercial property. This means the provider offers a platform for you to choose and manage your investments, with generally fewer investment choices and often no investment advice. This type of SIPP is usually ‘execution-only’.

The advice - and the typically wider investment options - means full SIPP fees are generally higher than lite SIPPs. Open-Ended Investment Companies (OEICs), unit trusts, etc.ĭepending on the provider, you may also have access to an investment adviser with a full SIPP.These SIPPs offer the widest range of investment choices, such as: There are broadly two different types of SIPPs to consider. If you are interested in taking control of your pension funds, we can help you start. It’s easy to set up and manage, which frees up more of your time for other things. This might sound like hard work, but Raindrop’s SIPP keeps the investment options simple and limited. To maintain most SIPPs you’ll need to understand how investments work, research where to put your money and spend time managing your portfolio. But with such flexibility comes responsibility. SIPPs have become increasingly popular since their creation in 1990 - there are now over 2 million of them! A big reason for their popularity is the ability to choose where to invest your pension money. As with all private pensions, you can only access the funds from your 55th birthday. SIPPs are ‘defined contribution’ which means the value of your retirement pot depends on the amount you pay in and the performance of your investments (which can go down as well as up). They’re a great choice if you’re self-employed and want to manage where your pension funds is invested or want to enhance your retirement savings (or all the above).

Self-Invested Personal Pensions (SIPPs) are a type of personal pension.

What is sipps