• SIPPs are, in effect, personal pensions with a few minor variations but usually with access to a much larger range of funds to choose from. This makes it a perfect partner for our bespoke investment strategy.
    Where personal pensions have a good fund range, the only funds available to use in them are from the provider of the pension itself. SIPPs on the other hand, have a much greater selection.

Self Investment Personal Pensions (SIPPS)

MAP advocates SIPPs over personal pensions in most cases, as the fund selection allows for access to strong performers, as opposed to potentially picking the best of a bad bunch.

SIPP owners should be aware of the additional cost involved, for use of those additional funds. With a personal pension you only have to pay the provider charges for their funds. With a SIPP you have to pay both the provider and the different fund managers, if used.

What a pension owner must weigh up is whether or not a SIPP is better for them, i.e. pay extra charges for possible better returns. We suggest those with funds of £25,000 or less could be better using personal pensions. This is merely looking at things in terms of cost.

To maximise pension returns, you will always be better off with a bigger choice of funds, so as to get the best performers in your pension. Remember, you can switch funds in a pension once started, so it is not a case of setting it up and hoping for the best.

You can also use SIPPs to buy commercial property. So if you were self-employed and could see an advantage in owning your own premises, this might be an option for you.

If you are unsure about what pension to start or how your own is performing, why not ask MAP for help. We also have the functionality to let you do your own SIPP without advice.