Fair Investment this week launches its Self Invested Personal Pension (SIPP) for investors looking to consolidate their pension savings in a contract offering a wide range of investment options.
SIPPs are a pension wrapper offering full tax relief for pension contributions along with access to a large number of investment opportunities.
The Fair Investment SIPP provides a diverse mix of investment options that includes cash accounts paying attractive rates, passive or tracker funds, plans offering potential defined returns and commercial property, as well as funds actively managed by leading asset managers.
While some SIPPs may simply offer access to a limited range of funds or a conventional fund supermarket featuring mutual funds, the Fair Investment SIPP Service seeks to exploit the flexibility and investment choices that are permitted, with more than 2,000 options to choose from.
One of the major features of UK pensions has been the much publicised demise of final salary pensions. Also known as defined benefit schemes, they are now increasingly rare with the latest figures from the Pensions Regulator showing that 58 per cent are now closed to new entrants.
This type of pension has been largely replaced by personal pensions and stakeholder contracts, which are also called defined contribution plans. Whereas defined benefit plans offer a pension based on an employees final salary, defined contribution plans are dependent on investment performance, charges and annuity rates to determine the level of pension paid in retirement.
People are increasingly likely to have more than one pension, a result of these more flexible pension schemes and increasing levels of job mobility. Figures from the Organisation for Economic Co-operation and Development for 2009 show over half of the people employed in the UK have been in their current job for less than ten years.
What a SIPP offers
The main features of the Fair Investment SIPP is that it will allow you to bring any existing pension investments together and take responsibility for your pension investment strategy in a cost efficient contract.
The service has no set-up charges and offers access to investment funds with the vast majority available at no initial charge. There is a basic service charge of 0.85 per cent paid for the service and additional discounted annual management charges may apply to specific investments made within the SIPP.
We will provide up to date investment information and news, and will take you through the process of setting up a plan and arranging transfers of your existing contracts.
As investors take on the investment responsibility when investing through the Fair Investment SIPP Service you should be aware of the risks associated with specific investments before making a decision to invest.
This is a non- advised service but if you feel you need financial advice on your pension investments we can provide this on request.
© Fair Investment Company Ltd