By: Susan Wade
Self-invested personal pensions (SIPPs) are a topic that many people misunderstand, but the concept of them is actually a rather simple one: essentially, a SIPP is a pension 'wrapper' that holds your investments until you retire. They work in a very similar way to standard personal pensions, with the main difference coming down to the increased flexibility that they offer the pension holder.
How SIPPs Work
SIPPs may not be hard to understand, but that doesn’t mean that they're suitable for everyone. Although their popularity has grown tenfold over the last decade, they're suited to a very specific type of person.
A standard personal pension scheme is created to suit almost everyone. It usually takes the form of a pooled fund, and an experienced professional manages your investments on your behalf. Continue reading "A Brief Guide to SIPPs"