What is a SIPP?
A Self-invested Personal Pension (SIPP) is a government approved personal pension plan that is distinctly different from a private pension.
I’m an expat, is a SIPP more useful than a QROPS?
SIPPs allow for a greater range of investments than personal pension plans, however for expats the benefits of QROPS generally outweigh those of SIPPs.
How does a SIPP work?
A SIPP offers more flexible avenues of investment than a standard pension, however many SIPP products are often managed fully by the provider. Another option favoured by providers is a hybrid scheme where some of the assets are held in a conventional insured fund, and the rest is self-invested by the policy holder. This is to ensure the providers costs are covered. The final option is a full access scheme where the holder is able to invest as they wish, as long as it is within HMRC’s allowable investment asset class.
What is a QNUPS?
A QNUPS is a Qualifying Non-UK Pension Scheme that is similar to a QROPS with a few differences. A QNUPS was created to iron out a crease that was found in the QROPS.
With a QNUPS there is no maximum age for investing, you can continue to place money in it for as long as you wish. Also, it is not necessary to pay contributions from employment-sourced income. With a QNUPS you are free from a maximum contribution limit.
However, because QNUPS are a very new product, it is advised that you discuss your circumstances with an IFA to establish if it is the best option for you.
Who can I talk to if I need more help?
Finding the right pension scheme brings complex decisions that require proper planning and professional help. Speak to a specialist financial adviser for impartial information on planning your retirement.