A Self Invested Personal Pension or SIPP gives you far greater control of your pension investments than traditional pension schemes. For example, your SIPP has the possibility to house a wide range of investment vehicles including; stocks and shares, investment funds and even commercial properties.
As more people look to take advantage of a SIPP, lower cost alternatives have been developed that typically focus on investment funds only. However, these lower cost SIPP providers still generally offer a far greater range of fund ranges than you will find at a traditional pension scheme.
In addition to giving you greater control over your pension pot, a SIPP also provides some highly valuable tax benefits. Investments within a SIPP can grow exempt from capital gain tax as well as income tax. Moreover, a basic tax relief of 20% is instantly added from the Government and it is possible to take a 25% tax free lump sum from your pension fund at the age of 55.