Amanda Redman Financial Planning

Associate Partner Practice of St. James's Place Wealth Management

SIPPs will not be suitable for everybody and generally only those who are fairly experienced at actively managing their investments should consider this type of investment. The levels and bases of taxation and reliefs from taxation can change at any time and are dependant on individual circumstances. The value of a SIPP can fall as well as rise. You may get back less than the amount invested. 'Income drawdown' will reduce the size of your pension fund and the investment growth may not be sufficient to maintain the level of income you wish to draw. If you withdraw money at a rate greater than the growth achieved by your investments, your remaining fund will reduce in value. The level of income you take will need to be reviewed if the fund becomes too small- this is more likely the higher the level of income you take.

  • The income you receive may be lower than the amount you could receive from an annuity, depending on the performance of your investments.
  • As annuity rates can change substantially and rapidly, there is guarantee that when you do purchase an annuity the rates will be favourable. This could mean that your pension thereafter may be less than you hoped for.
  • The rules governing how much income you can take directly from your pension fund may change. This could mean that the income you can take from the investment no longer meets your requirements.