Structured Pension Investments

Pension Investment – Structured Investments

Two types of Structured Investment pension options are available through the Fair Investment SIPP Service, generally this type of investment is for a fixed term and offers the potential for defined returns.

Structured Deposits are cash based term deposits that offer capital protection similar to a fixed term bond. This type of deposit offers the potential for a defined level of interest often linked to the performance of an index like the FTSE 100 over a specific period of time.

Whilst structured deposit plans are capital protected, you may not get back the full amount of your initial investment if the plan is not held for the full term. There is also a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated.

Structured Investments are designed to deliver either income or growth. There are investment risks and counterparty (financial institution) risks with Structured Investments, but they can offer the potential for a defined level of return which could reduce associated volatility in a pension investment portfolio.

Some structured investment plans are not capital protected and there may be the risk of losing some or all of your initial investment. There is also a risk that the company backing the plan or any company associated with the plan may be unable to repay your initial investment and any returns stated, in which case you will not be entitled to compensation from the Financial Services Compensation Scheme (FSCS).

In addition, you may not get back the full amount invested if the plan is not held for the full term. You should ensure you are fully aware of any risks prior to making a decision on investing.