Is a SIPP a stakeholder pension?
Answer
A SIPP is not a stakeholder pension. Both are personal pension plans governed by the same contribution and tax relief rules. However, they have key differences:
- A stakeholder pension is a simple pension plan with limited investment options and maximum annual charges that must be met by providers.
- A SIPP offers you complete control over how your pension pot is invested and the freedom to make changes.
With an AJ Bell SIPP, you can choose from more than 2,000 funds, shares, investment trusts, tracker funds, corporate bonds and gilts. You are in control of the investment decisions. If you don’t need this flexibility and choice, a stakeholder pension could be more suitable.
If you’re unsure whether you need a SIPP or another type of pension, you should speak to a financial adviser.
Find out more information about the different types of pensions.