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> Self Invested Pension - UK Guide
 About this type of pension
The self invested pension is like a personal pension but with far more control and flexibility. Introduced in March 1989, these pensions are becoming increasingly popular in the UK.
Who is this pension for?
The self invested pension is idea for anyone that wants a more flexible version of a personal pension. These self invested pensions can be used to consolidate other pension funds into one flexible fund. Or, a partnership or sole trader can use this type of pension to acquire commercial property with tax benefits.
Advantages of this pension
There are a number of advantages to a self invested pension. The benefits include:
Executive benefits, as the scheme can be used to buy commercial property
A wide choice if investments to provide more control
A flexible scheme ideal for varying incomes
Flexibility
Because this is a self invested pension, there is far more flexibility. The choice of investments is wide, and the self invested pension offer a flexible payment scheme for varying incomes. The structure of this pension also favours larger sums, which can work to your advantage.
Restrictions and penalties
There are a number of restrictions that come with a self invested pension, and some of the ones to bear in mind include:
The funding levels can be restricted
No transactions can be carried out with anyone connected to the scheme
Unquoted stock is not to be held
What to look out for with this pension
The self invested pension is a cost effective and flexible retirement fund option. You can enjoy far more control over this type of scheme, and plenty of benefits. There are a number of restrictions in place with this sort of plan, and it is important that you take note of the restrictions imposed on your chosen self invested pension before you commit in order to ensure that you are getting the right pension for your needs and circumstances.
Possible alternatives to this pension
There are a number of other savings and investment schemes you can opt for to fund your retirement as an alternative to a self invested pension. However, you should make sure that any alternative scheme you opt for is likely to offer equal or better benefits than your self invested pension scheme in order to look forward to a more financially secure retirement. Options include:
ISAs
Endowment policies
Property investment
You could also opt for another type of pension, such as an executive pension, a self administered personal pension, or a personal pension. With so many pension and investment products available it is often advisable to speak to a financial advisor before making a firm decision on the best pension for your needs and circumstances.
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