Chapter 14



A self-invested personal pension or SIPP is a personal pension that allows an investor to manage his/her own investments.

Within a SIPP the investor can hold a range of investments including shares, bonds, unit trusts and OEICs, foreign shares and property. A SIPP also gives the investor flexibility over how the investments are managed. The investor can choose to manage the investments himself or can choose one or even several investment managers if the fund is large.

Under a SIPP, the management of the investment portfolio is separated from the pension administration which can make self-management of a pension a realistic option.

Estimates suggest that 130,000 individuals have self-invested personal pension plans and that total is expected to grow significantly over the next few years as investors take advantage of the new pension rules that came in April 2006. Under the new rules, it is possible to hold a SIPP in addition to belonging to a company pension scheme.

Although a SIPP is a pension scheme, the fact that the investment portfolio can be managed separately means that it is now a common feature in investment firms and for the staff who undertake investment administration.


Self-invested personal pension plans were introduced in 1989 to give individuals greater control of their pension investments and more flexibility.

For many years, governments have allowed contributions to personal pension ...

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