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Step 1
Choose the SIPP that suits your budget. Anyone can open a SIPP. Many of the companies that supply SIPPs will not take monthly contributions below £300. But it really does not matter what your income is; if you are a UK resident you can benefit from basic tax relief. There are many companies that offer lower contribution rates, shop around before deciding.
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Step 2
Know that the low cost SIPP is known as the supermarket SIPP and will let you have access to many different stocks and shares through a fund supermarket. These SIPPS take a share of the management charge every year. In many cases they may be cheaper or on the same level as your current personal pension plan. Make sure you shop around and check the fees charges before investing.
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Step 3
Get a full SIPP if you are high earner or very in touch with investments. The SIPP provider will give you the wrapper for your SIPP but everything that goes into it is down to you. Full SIPPs are more expensive than other SIPP plans. A full SIPP is also more suitable to people who have an already large personal pension plan but want to change over in order to benefit from the tax relief and bonuses.
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Step 4
Transfer over to a SIPP if you already have a pension plan but want to see a better rate of tax relief. If you are a company employee then you can transfer your employer contributions into a new SIPP. Many self employed people have chosen SIPPS due to the flexibility it gives and the excellent tax relief.
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Step 5
Choose the SIPP that suits early retirement plans. If you have more disposable income to hand then a SIPP can help you make the most of it later in life.
