What exactly is a SIPP?
SIPP is short for Self Invested Personal Pension. SIPPs were first introduced in 1991. They were designed to give people more flexibility and control over their pensions. They are often described as a ‘pension wrapper’ into which you can put various investments. However until now what you have been able to invest has been limited to things like to stocks, futures and options, unit trusts, commercial property both freehold and leasehold. There are thought to be about 100,000 Sipps holders at present out of 6.5m people with personal or stakeholder pensions. The number of SIPP holders is expected to rise considerably following A-Day.
Related Questions
- Where a member is paying irregular contributions should each contribution be reported even though this does not involve the sale of a new SIPP?
- Should all types of pension transfer into a SIPP be reported as a separate transaction in PSD (product code 20)?
- As a SIPP provider do we need to report on underlying investments?
