Why invest in a SIPP?

Total control

Obviously the most important element of a SIPP is that you are in total control of your investment. If you’re an experienced trader then it seems only logical that you’d choose where to invest your own pension. You can set up your IWeb SIPP for free and never have to worry whether your pension provider is missing an opportunity again.

Pension consolidation

A SIPP is also a clever way of consolidating your pension – if you have pension schemes with previous employers and think that you could do a better job investing them yourself then why not consolidate those schemes into a SIPP. In addition, IWeb will allow you to transfer in any protected rights you have from contracting out of your State Second Pension (S2P).

It’s important to make sure you understand what benefits may be forfeited by transferring your pension into a SIPP. You can check these with your current provider.

Investment choice

The IWeb SIPP gives you access to a wide investment choice including: FTSE shares, funds, AIM stocks, Gilts, Bonds and many more. The wider the choice of investments you have, the more you’re able to diversify your portfolio and spread the risk of investing.

Perhaps one of the most popular SIPP investments is in funds. There’s no commission charge to buy or sell funds with IWeb, although an initial charge may apply and we offer special 0% initial charge rates on selected funds helping to lower the cost of investing in a SIPP.

Holding cash alongside investments

As well as diversifying the assets held in your SIPP account it may also be useful to hold some of your investment in cash so that not all your personal pension relies on stock market performance.

IWeb pays you interest on all cash held in a SIPP (The rate follows the Bank of England base rate). Holding cash also means that you're ready to invest when you spot that perfect opportunity.

Tax benefits

• The tax benefits of holding a SIPP account are also worth consideration.
• No Capital Gains Tax to pay on profits you make or dividends which you receive on investments within your SIPP
• Claim tax relief at the basic rate (20%) on your personal pension contributions up to £3,600 or 100% of your relevant UK earnings, whichever is higher
• For every £100 you intend for your pension plan, you just pay in £80 and the scheme-administrator claims back the other £20 from the taxman on your behalf. It's then credited to your SIPP account between 6 and 11 weeks after you've made the relevant pension contribution
• If you're a higher rate taxpayer you can claim 40% of your pension plan contributions. The administrator will claim back your basic rate tax allowance for you and you will be able to claim the remaining 20% relief via your self-assessment tax return.
• Please bear in mind that tax laws may change

Designing your own retirement plan

You can design your own pension investment plan to fit in with the timescales you have in mind for retirement. The IWeb SIPP allows you to set up your own investment plan, letting you control how much you subscribe and where to invest it every month. This plan can be left to run and because it requires a set amount to be invested, can help you budget your pension plan investment from month to month. It also costs just £1.50 commision for equities.

Already with someone else?

Compare our offering to that of your current pension provider and you’ll probably want to know how to switch to an IWeb SIPP. Read our switching information to start the simple process.

New to IWeb ?

Familiarise yourself with our SIPP Key Features,SIPP Scheme Terms and SIPP Service Terms, SIPP charges and the Risks involved before opening a Self Invested Personal Pension.

APPLY NOW for an IWeb SIPP