As a small business owner, a group SIPP (Self Invested Personal Pension) offers a pension scheme that is able to cope with the changing investment needs of your employees over their lifetime, giving the same flexibility and control to the individual both within the investment term and when an income is required during retirement.

A group SIPP behaves in much the same way as a group pension plan with the advantage of single scheme administration and group contribution collection. The schemes are setup under SIPP regulations so self investment is allowed and employees can take advantage of the SIPP flexibility and functionality.

It is worth speaking to a financial planner and obtaining tax help and tax advice when thinking about a group SIPP. The tax breaks available through group SIPP are significant and, for some employers, running a group SIPP may be cheaper than offering a stakeholder pension or group personal pension.

Unlike trust and contract-based pension schemes, which only allow members to invest cash, employees belonging to a group SIPP can make a wide range of investments, subject to certain HM Revenue & Customs restrictions. Investment possibilities include government securities, investment trusts, stocks and shares, commercial property, hedge funds and private equity.

It is advisable to obtain good financial advice and pension advice from your independent financial adviser when choosing a group SIPP scheme provider.  It is important to understand the charging structure and determine the ongoing cost of administering the plan. A good group SIPP should have a flexible charging structure to keep running and setup costs to a minimum. Scheme investors should only pay for the options they use, additional charges should only be levied when an individual chooses to use additional investment options available within the SIPP.

Any questions on Business Self Invested Personal Pension (SIPPs)?

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