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Step 1
Apply for a SIPP plan. Anybody under the age of 75 is eligible. You can apply online.
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Step 2
Select from Deferred, Hybrid or Pure SIPP schemes. In the Deferred SIPP scheme, you put all the benefits into an insured pension fund and invest at a later period. In the Hybrid plan, part of the assets goes into insured pension funds, and you invest the rest. With Pure SIPP plans, you have unrestricted access to a wide range of investment schemes.
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Step 3
Always read the fine print when selecting a SIPP plan. Make sure that the SIPP providers allow you to make investments of your choice.
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Step 4
Fund a SIPP scheme through personal and employer contributions, and by transferring benefits from other registered pension plans. Make contributions all at once, on a regular basis or at any time that suits your circumstances.
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Step 5
Get tax relief on personal and employer contributions, unless their aggregate total exceeds HMRC registered pension scheme tax allowances. Save on income tax on accumulated investments and on capital gains tax on sale of investments.
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Step 6
Invest in Cash Deposits, U.K. and International Equities, Gilts and Bonds, Unit Trusts and Commercial Property. One of the advantages of a SIPP is that you have a wide choice of investment plans. Switch investments at any time according to changes in the market.
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Step 7
Make investment decisions yourself or in consultation with your Financial Adviser or Investment Manager. Professional advice offers the benefit of financial expertise, experience and current knowledge.
