Sustain Investments

Pensions
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Did you know that you can transfer some or all of your existing personal pension funds into a Self Invested Personal Pension (SIPP). It’s a simple process that can be done for you by an expert adviser and which allows your investment to multiply tax-free within the fund.

A SIPP is a form of pension plan that allows you to choose where your money is invested, rather than the more conventional type where a fund manager invests it for you. You have total control. You can invest a lump sum, a regular sum or transfer some or all of your existing plan(s), or a combination of some or all the above – the choice is yours.

A SIPP is a defined contribution pension scheme. The amount of pension that is paid out to the individual on retirement is dependent on the total value of money that has accrued from contributions paid, whether by the individual or their employer, plus any returns gained from the investments made with the contributions received under current UK Revenue Legislation.

As with all pensions, you get income tax relief at your highest rate for all contributions, so that a higher rate taxpayer could invest £10,000 and get tax relief of £4,000 meaning that the investment of £10,000 has only cost them £6,000. But all earnings within the fund are based on a £10,000 investment. Not only are the contributions net of tax; all income and capital gains earned by the fund are free of all taxes. This makes the potential growth from compounding quite extraordinary. And when you come to retire, aged 55 or more, you can take out 25% of your fund as a tax-free lump sum. Special care should be taken if you are a high earner and we would recommend that you consult the key features document for full information about permitted contributions.

This is an ideal way to maximise your returns from investments. Whether you have one or more pension funds going back years from a previous employer, which can be transferred into a SIPP, or whether you set up a new SIPP and make monthly, quarterly (or whatever) contributions, you can re-invest each year’s returns to compound your gains.

Please ask your personal tax adviser or IFA for advice. if you do not have an adviser, please contact us and we will put you in touch with an IFA who can offer you advice and arrange a SIPP on your behalf.

Important Note:
Please note that Sustain Investments Limited is not regulated by the Financial Services Authority and is therefore unable to advise you in relation to the setting up of your pension plan.