Self-invested personal pensions (SIPP) are a popular choice for many looking to save towards retirement and who want to retain a lot of control over their financial future. They provide a lot more flexibility and choice when putting away your money for the years after you’ve finished working. You can find out more about what a SIPP is via financial services such as Bestinvest, but in 2017 there are many ways you can benefit from one, whether you’re intending to open one this year, build on an existing one or reap its rewards this year.
Pick Positive Investments
One of the main advantages of a SIPP is that you can pick and choose from thousands of investments and manage them yourself, work with an adviser or have an expert look after it all for you. Choosing positive investments here will result in a boosted SIPP, so if you want to manage them yourself it is important to know which investments are worth making.
In 2017 there are many tips for what investments your SIPP should be making. Tech trends including social media companies, educational technology, automation and virtual reality are all predicted to be big this year. Popular safe investments such as precious metals, government bonds, currencies such as the Swiss franc and more are advisable too.
If you’re looking to withdraw from a SIPP in 2017 then you can benefit from some excellent tax reliefs. The latest legislation means you must be at least 55 to begin drawing retirement benefits but you don’t have to have finished working.
Up to 25% of your accumulated fund can be withdrawn as a tax-free lump sum, whether you’re paying a basic, higher or additional rate. With a higher rate, you can therefore gain an increased total tax relief and the balance used to provide an income when you require it.
The best way to ensure your SIPP is performing well this year is to diversify the investments you make with it. If you already have other investments, this can further diversify your assets across many different markets, from stocks and shares to currencies and more. This means should one or two investments perform poorly in 2017, others should pick it back up.
A SIPP is incredibly flexible as well, allowing you to buy, switch and review investments when you need. Should some be doing poorly it is important you switch them up when necessary to protect future savings. Follow these tips to benefit from a SIPP in 2017.