Pensions
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SIPP or SSAS as alternative to insurance company
Mrs A is a partner in a small accountancy firm, and would like to make pension contributions. However, she does not like insurance companies.
Mrs. A likes to pay her pension contributions as one off lump sums at the end of each tax year, when she knows how much profit and funds are available. She has tended to pay this amount to a different insurance company each year, following the advice of different advisers. Consequently, she has a myriad of different policies.
By establishing a Self-Invested Personal Pension (SIPP), the different policies can be consolidated. Trustees, not insurance companies, run the SIPP, and therefore much of the usual administrative problems and hidden charges associated with insurance companies can be avoided.
The contribution for the current year is paid into the SIPP, and the existing policies are also analysed and transferred in. An investment portfolio, with an agreed strategy and benchmark, is then created in conjunction with Ovation and reviewed on an annual basis. Ovation provides a summary of the portfolio each year, meaning one summary of the position of Mrs. A’s pension.