Key decisions

A SIPP may be suitable for you if you are self-employed, your employer does not have a pension scheme or if you have a number of pension plans, which you would like to transfer into one plan.

It is particularly suitable for you if you want:

• the freedom to invest in the widest possible range of investments through your pension.
• flexibility over how and when you take pension income, using income drawdown.
• greater choice over the pension benefits available to your dependant(s) when you die.

Income drawdown is usually only suitable if you have a pension fund of £100,000 or over and have other assets or income to live on. This is because the fund that you don't use to provide benefits remains invested, so there is less certainty about the amount of pension that your remaining fund will eventually provide.

There are some risks associated with drawdown such as investment growth, mortality cross-subsidies and levels of withdrawal. For more information click here.

You are eligible for a SIPP if you are under age 75 and resident in the UK. If you are 75 or older you can only join if you are transferring an Alternatively Secured Pension (ASP) fund from another pension provider or registered pension scheme. ASP is a continuation of income drawdown after age 75.