If you’re looking for the right option for your pension provision later in life, then you’ll know how important it is to get an early start.  There are of course various kinds of pensions available to you in which you can invest your earnings in order to guarantee a long and happy retirement.  Everyone wants to enjoy their later years free of worry, and be able to do the things they’ve always wanted to.  With enough planning and foresight, you’ll be able to do just that.

SIPPs

One option that is increasingly popular today is a SIPP, a special type of pension that comes with the attractive tax breaks of other pensions, albeit with the extra advantage of having more control over your pension investments.  They also come with a 25% tax-free lump sum available when you turn 55, with a larger return coming to you if you are a higher rate taxpayer.  You can buy and sell a large range of assets as part of your pension at a low cost whenever you like.  If you’re a first-time investor then the simplest form of SIPP is likely to be the best choice.  The basic ones still provide a large choice when it comes to funds and shares, allowing you to build for yourself a considerable yet balanced portfolio that is crafted around your needs.

Return on Investment by Simon Cunningham, on Flickr.  This work is licensed under a Creative Commons Attribution 2.0 Generic License.

Where to Look

You can find SIPPs on offer from a wide variety of firms like Killik & Co, so look around for the type that will suit your plans best.  There are of course various factors that are worth considering while shopping around.  For one thing you should think about how much help you will need from the company, how much research you want the company to provide when it comes to finding the right investments for you, and of course which website is the one that you find it most comfortable to use, as many companies encourage you to organise your portfolio of investments online.

You may find it difficult at first to confront the issue of cost, as comparing the costs of different SIPP providers is unfortunately not straightforward.  Some will charge you a fixed annual fee, while others will slice off a portion of the value of your investments or they will charge when you switch assets around.  Ultimately, if you look around and make sure you know what you are agreeing to and what the costs will be before you sign up, then any of these can be made to pay for you in your retirement.