What is a SIPP?
SIPP stands for “Self Invested Personal Pension”, and in simple terms, it is a flexible, modern, pension vehicle owned by you. A Pension is simply a pot of money which you, your employer and the government can contribute into, with the purpose of providing an income and money in retirement. As the name suggests, a SIPP is “Self Invested”, meaning you you get to choose where your pension pot is invested.
Why would I put money into a SIPP?
It would be a fair assumption to say everybody looks forward to retiring! A well funded SIPP enables you to retire at an earlier age, in the knowledge that you have a source of income and savings to live off. In essence, it makes sense to siphon off as much excess income as possible throughout your working life, in order to fund a happy and comfortable retirement.