Is a SIPP Suitable For You?

Although self invested personal pensions (SIPPs) offer greater investment choice and flexibility, they tend to be more expensive to run than traditional personal pensions, and so it is generally recommended that you will need to have a pension fund of around £50,000 or more in order to make this type of pension scheme cost effective. Charges levied by providers are often subject to a minimum flat rate amount, which can mean that small contributions may not be financially viable.

In addition, their increased risk (and hence, their possible increased gains) means that anyone considering investing in a SIPP should be comfortable with the greater risk they'd be taking compared to a managed pension fund.

If you're considering using your SIPP to invest in property, you should be aware that it must have sufficient funds to buy the property (either with a mortgage or outright), as a SIPP is restricted in the amount it can borrow.