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How SIPPs Compare With Traditional Pension Schemes


SIPP vs Personal and Stakeholder Pension

"A good way to think of a SIPP is as a shopping trolley into which you can place many different types of investment, including funds, shares, bonds, gilts, futures and options, commercial property and more. The SIPP itself is merely a tax‐efficient wrapper around those investments"

Both types are usually run by insurance companies, which generally only offer their own funds or a limited selection from other fund managers. The drawback is while a single company may have expertise in one area, it is unlikely to have the best record across all fund sectors. One might offer a good Far East fund, while another may be renowned for its expertise in picking European shares.

SIPPs offer the widest possible choice of investments, allowing holders to pick funds from across the market. You could choose a top UK smaller companies fund run by investment house A, a leading US manager at investment house B and a top fixed income manager at investment house C. With a personal pension, you must choose from the investments offered by that particular pension provider. Some of the funds offered may be good, but it is unlikely that all of them will be.

  • Logo - Standard Bank
  • Logo - Belmont
  • Logo - Generali
  • Logo - Hansard
  • Logo - Royal London 360
  • Logo - Gower
  • Logo - Sovereign
  • Logo - Brooklands