SIPPs: Why SIPP fees might be about to rise

Why SIPP fees might be about to riseFears are growing that investors in Self-Invested Personal Pensions (SIPPs) could see fees rise sharply following an increase in the cost of regulation. All SIPP providers pay fees to the Financial Conduct Authority (FCA), as well as an annual levy to the Financial Services Compensation Scheme (FSCS), which “pays compensation if a firm is unable, or likely to be unable, to pay claims against it.” Miss-selling and toxic investments As anyone who has read our blogs over the past few years will know, the self-invested pension ...

SIPPs: Providers split over final capital adequacy proposals

SIPP logoNearly two years after the original capital adequacy proposals the Financial Conduct Authority has now released their final rules. Most people agree the new rules are a ‘watered-down’ version of those first proposed:   Many SIPP providers, although not all will have to reserve far less capital than they originally thought UK commercial property, as well as other assets such as UK bank accounts, will now be treated as ‘standard assets’ The surcharge for taking in ‘non-standard’ assets will now be based on the number of SIPPs managed rather than the value of assets So ...

SIPPs: Suffolk Life launches new bypass trust

SIPPs: Suffolk Life launches new bypass trust A leading SIPP provider has launched a new bypass trust to help SIPP investors reduce their future Inheritance Tax liabilities. Suffolk Life, who administers over 20,000 self-invested pensions, with £6 billion of assets, will now make the new trust available as standard on their range of SIPP (Self-Invested Personal Pension) products. How does a bypass trust work? Lump sum death benefits paid from a pension before ...

Pensions: Should the rules be changed to allow early access?

iStock_000017861768XSmallMost of us know we are not paying enough into our pensions, a fact confirmed by two recent reports. Firstly, annuity provider, Partnership, showed the average drop between pre and post retirement income is 40%, whilst figures from Aviva showed that 20% of people are not paying into any form of pension. There are many reasons why most of us are not putting enough money aside for retirement by paying into a pension; cost, apathy, and mistrust are three. Lack of ...