SIPP Benefits and Risks

Benefits of the Killik & Co SIPP

There is no initial SIPP set up fee and our annual SIPP charge is in the form of a flat custody charge on each security held, and is not calculated as a percentage of the overall value of the SIPP.

The Killik & Co SIPP offers the widest range of permitted personal pension investments including UK and Foreign Equities, Bonds, Funds and many more. We can buy almost any pension investments traded almost anywhere in the world.

The Killik & Co SIPP pension arrangement will permit the holding of Protected and non Protected Rights.

The Killik & Co SIPP retirement options offer Unsecured Pension (USP) and Alternatively Secured Pension (ASP).

SIPP clients will be able to deal in most funds with up to 7.5% discount on their initial price.

SIPPs offer a wide range of pension investment choice including direct holdings in cash, Equities (both UK and foreign), Gilts, Units Trusts, Investment Trusts and even Commercial Property.

This wide variety of pension investment options gives you the opportunity and flexibility to have a truly diversified portfolio.

Personal pensions provided by insurance companies traditionally have a much more limited range of funds available for pension investment.

SIPPs provide great flexibility when it comes to taking retirement benefits including going into drawdown (drawdown involves taking up to 25% of your pension investment as tax free cash and taking an income from the remaining 75%) rather than having to purchase an annuity.

A SIPP is your own personal pension which you control via SIPP management, making pension investment decisions whenever you wish, throughout your life.

If you die before you take benefits, then 100% of the value of your SIPP can be paid to anyone you choose without Inheritance Tax.

Tax relief on SIPP contributions - all contributions to your SIPP are paid net of basic rate tax and HMRC pays the pension provider the tax rebate directly into the pension plan e.g. for every £80 you pay into the pension, HMRC tops it up with £20. For the higher rate tax payers there is an additional £20 relief payable through the tax system.

There is no Capital Gains Tax (CGT) or Income Tax on the pension investments within a SIPP except dividend tax credit of 10% which cannot be reclaimed and some withholding taxes which operate in different countries.

Tax free lump sums - up to 25% of the value of your SIPP can be taken as tax free cash at age 55.

SIPPs allow you to take benefits through drawdown (drawdown involves taking up to 25% tax free cash and drawing an income from the remaining 75%. The remaining 75% is invested to produce a return).

The Killik & Co SIPP is not a risk free product. Your capital may be at risk due to the investments held within this pension arrangement.

Individual pension investments are subject to fluctuation and you may realise less than the sum invested in your SIPP.

The tax treatment of pension investments and tax wrappers (SIPPs included) may also change with future legislation.

Read about the benefits and risks associated with a Self Invested Personal Pension (SIPP).

Pension Review Service: If you would like one of our qualified Brokers to review your current pension arrangements, please call us on 020 7337 0520.

Request our SIPP brochure: Read more about the Killik & Co SIPP by requesting our free SIPP brochure, electronically or by post.

SIPPs explained: For further information about SIPPs and your retirement options, please request your free copy of SIPPs explained.