01: Introduction

Self-invested personal pensions (SIPPs) are not a new concept, although you might think otherwise from the press attention they have recently attracted. SIPPs first appeared in March 1989, less than a year after the launch of personal pensions. Until recently, the use of SIPPs was largely confined to pension fund withdrawal plans and phased retirement. These two areas remain important application for SIPPs, but the role of SIPPs has now widened considerably.

Pension simplification, which took effect in April 2006, has brought SIPPs into the spotlight. In part, this is because SIPP contribution limits are now generally much greater than they used to be (see Pensions Simplification). The more flexible benefits available under the new tax regime also favour the SIPPS structure.Last Updated