What is a Killik & Co SIPP?
Our SIPP offers flexibility around benefits payable during your retirement and how your family and other beneficiaries can inherit the fund on death. Depending on how confident you are managing your investments and the level of control you wish to have, your dedicated Investment Manager can help you choose either a Managed or Advised Investment Service. There are no minimums for a SIPP wrapper itself, and we can invest in over 30 markets worldwide, through a huge range of investments such as:
- Gilts and other fixed income instruments, such as corporate bonds
- Collective investments such as unit trusts and investment trusts or OEICs
- Equities
- Cash
Other investments, such as direct investment in commercial property, may be acceptable subject to meeting our criteria.
And if you choose our Wealth Planning service, we can also review your entire financial position, including other pensions and investments, offer pensions advice, tax-efficient structuring across all investments and tax-wrappers, and produce a personal financial plan, complete with your own lifetime cash flow model.
We have even won awards for our Killik & Co SIPPs .
Capital at Risk
Past performance is not an indicator of future returns please remember as with all investments your money can rise and fall.
Who is a SIPP suitable for?
SIPPs could be suitable for anyone looking to make pension contributions or consolidate existing pensions in one place. There are no age limits for starting a SIPP and they are available to anyone in the UK. However, tax relief on personal contributions is only available until age 75.
Choosing a SIPP over an alternative pension, will usually be driven by a specific objective to have greater control over the investment strategy and influence towards the investment performance. Improving flexibility around the payment of pension and death benefits is another factor when selecting a SIPP.
In the first instance, it usually makes sense to join a workplace pension, as your employer will often contribute as well. These contributions are usually conditional on you remaining in the workplace pension so not joining could mean that you miss out. There may be other benefits too, and with employers being free to offer different workplace pensions and benefits, it is important to research these or to take professional advice.
A SIPP can be a good option for people wanting to make extra contributions, over and above a workplace pension. It can also be used to consolidate old pensions that do not offer suitable benefits or investment options. Again, if you are transferring, it is important to ensure you do not lose any guaranteed benefits. You can read more here about Pensions and SIPPs – accumulating for your retirement and Pensions Planning and Advice – when and what can I afford in retirement?
It is worth considering if you have the time to research and gain a thorough understanding of financial markets, to actively manage investments yourself. This is an area where access to a qualified Investment Manager via our Advised SIPP can help, though it is still a significant time commitment. Alternatively, you could choose to delegate day-to-day responsibility for the construction and management of your investments, through our Managed SIPP.
Pension Transfers
Pension transfers can be complex and for some types of pensions, in particular those with guaranteed benefits, such as defined benefit schemes and any other pensions with safeguarded benefits, you might wish, or be required, to take regulated advice about your options.
How much can I contribute?
The annual allowance for pension contributions in the current tax year (2023/24) is £60,000 (gross). It covers contributions paid to all pension schemes for you during the tax year and includes third parties, such as employer contributions.
However, the allowance could be substantially lower where you have a high income or flexibly accessed pension benefits. Contributions may be further restricted where you do not have sufficient earnings to qualify for tax relief. While these can be complex areas, the main points to be aware of are:
- If your annual income is more than £200,000 for the tax year, you may be subject to the tapered Annual Allowance. The calculations can be complex but anyone who is fully subject to the taper has a reduced Annual Allowance of £10,000.
- If you take an income under the pension freedoms legislation introduced in 2015, your Annual Allowance is permanently reduced to £10,000. This is called the Money Purchase Annual Allowance.
- Tax relief on personal contributions is restricted to your relevant earnings where these are below your unused allowance.
- If you do not have any earnings, you are limited to contributions of £3,600 every tax year.
The total contribution, including tax relief an individual can make, will generally depend on a number of factors. As we move forward under the new legislation, higher earners in particular, should ensure that they receive the appropriate advice that will allow them to maximise the amount of tax relief that they receive.
Some individuals may also be able to carry forward unused annual allowances from the previous 3 tax years*
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How much can I contribute?
The annual allowance for pension contributions in the current tax year (2023/24) is £60,000 (gross). It covers contributions paid to all pension schemes for you during the tax year and includes third parties, such as employer contributions.
However, the allowance could be substantially lower where you have a high income or flexibly accessed pension benefits. Contributions may be further restricted where you do not have sufficient earnings to qualify for tax relief. While these can be complex areas, the main points to be aware of are:
- If your annual income is more than £200,000 for the tax year, you may be subject to the tapered Annual Allowance. The calculations can be complex but anyone who is fully subject to the taper has a reduced Annual Allowance of £10,000.
- If you take an income under the pension freedoms legislation introduced in 2015, your Annual Allowance is permanently reduced to £10,000. This is called the Money Purchase Annual Allowance.
- Tax relief on personal contributions is restricted to your relevant earnings where these are below your unused allowance.
- If you do not have any earnings, you are limited to contributions of £3,600 every tax year.
The total contribution, including tax relief an individual can make, will generally depend on a number of factors. As we move forward under the new legislation, higher earners in particular, should ensure that they receive the appropriate advice that will allow them to maximise the amount of tax relief that they receive.
Some individuals may also be able to carry forward unused annual allowances from the previous 3 tax years*
Tax Treatment
The tax treatment depends on the individual circumstances of each client and may be subject to change in the future.
Is a SIPP a part of your estate?
The Killik SIPP is held within a discretionary trust and normally should not form part of your death estate. This means that it is exempt from inheritance tax (IHT), unlike many other assets, which can offer a significant tax saving for your beneficiaries.
How much does a Killik & Co SIPP cost?
There is no cost to open a Killik & Co SIPP or transfer across an existing pension (although it is worth checking there are no exit charges from the provider you are leaving). There are no charges for cash contributions including direct debits, however, given the flexibility and breadth of investment options with our SIPP, there are a range of other administration fees which may be applicable, which are detailed here in our SIPP rate card.
There will be fees in connection with the other services you select, such as for investment management and advice. Our Advisers can discuss these options with you and confirm the charges you can expect.
How do I take money from my SIPP at retirement?
You can start to access money from your pension pot from age 55, rising to 57 in 2028 but there are a variety of options available to you.
For more information visit Drawing an Income in Retirement or visit our Killik Explains educational videos for more on the topic.
Why choose Killik & Co?
Whether you are looking for a Managed or Advised SIPP, or Pension Planning and Advice, we can help.
See what some of our clients have to say about us or contact us so you can speak to one of our Advisers about your requirements.
Enquire today
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