Pension Transfer to a SIPP

Considering whether to transfer your final salary pension to a SIPP can be an extremely stressful and trying decision. After all, pension plans give you guaranteed income throughout your retirement. However, many retirees are opting to give up their pension rights in lieu of investing it as a lump sum into investment accounts like a SIPP.

So, should you transfer your final pension to a SIPP?

This decision is conclusively up to you. Consider investment goals, savings horizon, and both current and future financial obligations before committing. However, with the right investments, opting for a final pension transfer can without a doubt work to your advantage and put you on track for the future you desire.

Investing money through a SIPP is an easy and effective way to quickly save for your future, but what happens to your SIPP when you die?

The fate of your pension and investments will ultimately be up to you. When opening a SIPP you will be given an option to name beneficiaries to receive the remaining value of your pension when you pass. This can be spread across several beneficiaries as a lump sum or paid out through installments to provide the beneficiary with financial security over a period of time. Inheritors who receive a payment from an account holder age 75 or younger will not be subjected to additional taxes, but marginal tax rates will be payable if the account holder was over the age of 75 at the time of death.