Britons are increasingly relying on SIPPs to save up for their retirement as they want more flexibility on how their pensions work. In general, there is a growing awareness that the state pension will not be enough to finance a comfortable retirement, along with the success of workplace pension auto-enrolment, encourages people to take control of their pension prospects, Rajan Lakhani, the money expert at Plum. Can you choose how much you save and how often you can contribute, or you can contribute a lump sum. The individual can choose which funds to invest in, either by themselves or through a financial advisor.
The second key driver for the trend is changes to technology as people can now manage a SIPP on their own with DIY investment apps, he said. The process for creating a SIPP depends on the provider, the expert said. s similar to opening up a regular investment account, though there are a few extra steps, he said. If you want to retire, then choose from a variety of funds based on your risk tolerance.
The person can transfer over other pensions into their SIPP. Mr Lakhani urged people to read through the terms and conditions and legal information about a SIPP before setting up one. A SIPP retirement can include various investments, such as listed and unlisted stocks and shares, gold bullion or commercial property.