20 Feb 2015, 9:50pm

by

leave a comment

  • November 2017
    M T W T F S S
    « Oct    
     12345
    6789101112
    13141516171819
    20212223242526
    27282930  
  • Archives

  • SIPP

    Self Invested Personal Pension

    A tax-advantaged pension savings wrapper – can contain shares, cash and some other types of investment. You contribute to a SIPP from pre-tax pay (gross pay) but you pay tax when you draw from it. In the UK you have to be at least 55 (rising to 57) to draw from a SIPP. Most people earn more when working that as a retiree, so a SIPP normally reduces the overall tax paid. Plus you get to take 25% of it tax-free in a PCLS

    Contrasted with an ISA wrapper where the tax is paid on the way in, not the way out, and there is no age restriction

    « Back to Glossary Index

    Leave a Reply

     
     
  • Recent Posts

  • Subscribe to Simple Living In Somerset via Email

    Enter your email address to subscribe to this blog and receive notifications of new posts by email.