Have you been mis-sold a SIPP?
A Self-Invested Personal Pension (SIPP) is a personal pension scheme, which was approved by the British Government in 1989. More than one million UK citizens proceeded to take advantage of it as a tax privileged savings plan, due to the feature of off-shore investment and the opportunity to create a varied portfolio.
SIPPS normally attract higher fees due to the flexibility and superior earning potential for investors. As a result of the high fees earned from SIPPS, many Advisors convinced Savers to switch to it, purely to generate additional income through commission. They saw the potential to encourage savers away from the standard low risk style of British pension.
Unfortunately, high risk investment schemes are frequently marketed as unique opportunities to achieve a considerable profit, very quickly. Sadly, this is not what they really are. Far too often people were being pushed to gamble their futures by unethical financial advisors.
While they offer more flexibility, SIPPS are considered riskier to Savers than other types of British pensions as they rely upon the success of where the money is invested. Employers do not make contributions towards SIPPS.