The Wide Appeal of Low Cost SIPPs

Self Invested Personal Pensions (SIPP’s) are DIY pension schemes which enable individuals to choose their own investments.Whilst the first SIPPs were originally created to cater for wealthy savers, today’s SIPP’s are far more accessible as they are much less expensive and complicated than their earlier for bearers. Indeed, the low-cost SIPP’s available today enable middle-income investors of all backgrounds to enjoy the opportunities of managing their own pensions and boosting their returns.

Certainly, these low-cost DIY pensions allow investors to build their nest-egg with far greater flexibility and, potentially, fewer costs.Low-cost SIPP’s are very similar to the fund supermarkets that are used by Isa investors. In fact, the only real difference is in the pension tax ‘wrapper’ that ensures investors don’t pay income tax on their contributions. Naturally, this can be incredibly beneficial to higher rate taxpayers who are on rates of 40% or even 50%.

Unsurprisingly, the popularity of SIPPs has grown considerably over the past few years as their costs have come down. So, despite what some people may continue to think, today’s SIPP’s are not just the exclusive preserve of the mega rich or the super-savvy investor.Quite simply, low-cost SIPP’s can provide investors with far more investment choice than most insurance company personal pensions and help them to save significant amounts of money.