THE IMPORTANCE OF A PENSION PLAN
A pension is a long-term savings plan with tax relief. Your contributions are invested with a view to grow throughout your career and to then provide you with an income during your retirement. The sooner you start saving, the more time your money gets to grow. If you are looking to take control of your finances and are considering making long-term investments with the benefit of tax incentives, you may now be able to allocate your pension money towards Shojin’s investment opportunities through our online platform. You can invest your pension monies subject to the requirements of your pension provider.
WHAT IS A SIPP & WHAT IS A SSAS?
Individuals now have the freedom to choose and manage their own investments across various asset classes. Ultimately, this gives pension holders more choice and ability to diversify their savings portfolios and target higher returns in our current, low interest rate environment. A Self-Invested Personal Pension (SIPP) is a UK government-approved pension ‘wrapper’ that holds investments until you retire and start to draw retirement income. It works in a similar way to a standard pension, with certain tax benefits and access to income from the age of 55. However the main difference is that you have more flexibility to choose your investment instruments. A Small Self-Administered Scheme (SASS) is a type of small employer sponsored pension scheme approved by HMRC. This is usually established by an approved trustee to provide retirement benefits to directors and a small number of senior employees. Insurance companies and other pension providers may also offer SSASs. A SSAS can hold an even wider range of investments in comparison to a SIPP.
HOW MUCH OF A TAX ADVANTAGE DOES A SIPP & SSAS PROVIDE?
Using a SIPP can be particularly tax effective for higher rate tax payers because funds transferred to a pension fund immediately attract tax relief at their marginal rate. In addition, the interest earned in a SIPP is tax free. Both pension members and employers can contribute to SSAS schemes and both will benefit from tax relief for doing so. This is especially attractive to company directors and senior management who are looking to reduce their total tax liability through pension contributions.
ADDITIONAL BENEFITS OF A SIPP & A SSAS
Along with the contents of your Will, your SIPP benefits can be paid to your beneficiaries, either as a lump sum or as an ongoing pension. The tax treatment of any death benefits paid from your SIPP will depend on your circumstances.
WHAT IS THE PROCESS TO INVEST VIA MY SIPP?
- Please check that the investment is approved by your SIPP administrator.
- Visit www.shojin.co.uk and register a new account on the website. At the KYC stage, please proceed as a Trust User through the registration process.
- The following details relating to the Trust will be requested:
- Trust Deed or Trust Agreement
- Recent Trust Bank Account Statement
- Download and complete the Trustee & Beneficiary Declaration form
Once these details have been approved, you will be able to transfer the funds through the platform and invest in one of our schemes.
HOW CAN I INVEST VIA A SSAS?
If you are interested in investing or require further information, please register a new account on the website and put your scheme administrator in touch with us to discuss options and complete the process.