What You Need to Know About the SIPP Centre Personal Pension

Self Invested Personal Pensions (SIPPs) are one of the ways in which you can take control of your own retirement planning. Sipp Centre is one of the largest providers of SIPP Pensions in the UK. Sipp Centre is operated by AJ Bell. Here's some information about the SIPP Centre SIPP pension plan.

The Sipp Centre pension plan can be opened online and then operated through the Sipp Centre website. A SIPP can either be opened by itself, or it can be opened by transferring an existing pension plan into the SIPP. Protected Rights from contracted out of the state second pension can also be moved into the SIPP (with restrictions on what you can do with the money).

A third option is to use the network of independent financial advisers that are authorised to open SIPP accounts. An adviser can give you guidance on whether the SIPP is the most suitable investment for you. Should you so choose they can also be instructed to operate the SIPP on your behalf.

Like most other SIPP providers, Sipp Centre provides a wide range of investments that can be held within the SIPP. There is a fund supermarket where you can choose from a wide range of unit trusts. Many of the unit trusts have low or no initial charge - over the long term the reduced intitial charge makes a big difference to the eventual size of a pension pot.

Within the SIPP it is also possible to buy and sell a wide range of stocks and shares, including the popular range of Exchange Traded Funds (ETFs). ETFs make it possible to invest in a wider range of investments from commodities such as natural gas to precious metals like gold.

One particular attraction of the Sipp Centre pension is that it allows you to hold specific properties within the pension plan. This is often an attractive investment, particularly for small business owners who own their own commercial property. Not many other SIPP providers provide this option.

The Sipp Centre has a range of charges, including a set up fee and a quarterly administration charge. These charges can be a higher proportion of your total pension pot if you have a smaller pension.

In addition there is a charge for moving a pension into the Sipp Centre pension plan.

There are also various charges for transferring out of the SIPP, or to purchase an annuity etc.

Before opening a SIPP it's worth doing some calculations to see what sort of charges your chosen SIPP might incur. There are a range of other SIPP providers with different types of charges (see below).

There are a number of SIPP providers available. When selecting a SIPP take care to investigate the following:

• How easy it is to transfer pensions into the SIPP.
• Whether advice is available about pension transfers (especially if you are transferring in from existing company or final salary schemes).
• Whether there are any annual charges.
• What flexibility there is when you come to draw your pension..
• Dealing charges if you intend to do a lot of stock or ETF trading, or whether they refund unit trust initial charges.
• Whether the SIPP provider allows alternative investments such as specific properties to be held within the SIPP.

One of the most popular SIPP providers is Hargreaves Lansdown. This Bristol based company is long established and is itself now listed on the London Stock Exchange. It has a wide range of financial products available including ISAs, dealing accounts and a SIPP. Their staff are knowledgeable about their products and the call centre is based in the UK. Most day to day administration of the Hargreaves Lansdown SIPP can be carried out through their online website.

The Hargreaves Lansdown SIPP has fairly low charges, and is one of the more cost effective options if you have a smaller pension fund. Hargreaves Lansdown have a wide range of investments available for you to buy for your SIPP. They are one of the most competitive SIPP providers in terms of the discounts on the initial charges of unit trust funds. Their dealing charges however are fairly high, especially for the larger transactions that are typically carried out in a SIPP. Hargreaves Lansdown also do not allow you to hold a property within their SIPP (although you can of course invest in commercial property funds and REITS).

So this is a brief overview of the SIPP Centre pension offering. Pensions are a particularly complex financial product. If you need help with choosing or moving a pension then always take independent advice from someone who is qualified to give financial advice regarding pensions.

This article does not consitute financial advice. Before taking out a financial product such as a pension be sure to seek independent financial advice from a qualified independent financial adviser.