Self-Invested Personal Pensions, better known as SIPPs, are a pension investment product designed to offer a “better” freedoms and potential returns than standard pensions or investment funds. You use your pension ‘pot’ to make a series of investments into a number of funds that would usually not be available to an unsophisticated investor. Over time, the value of the funds should increase, giving you a healthier return to fund your retirement.
A Pension SIPP is a complex investment, only sophisticated investors understand the market well enough to feel confident investing pension funds into these products. Using a financial advisor to receive advice on investing in a “Self” Invested Personal Pensions is quite the contradiction.
SIPPs can be incredibly risky, the investment included within your SIPP may be unregulated or illiquid (meaning once invested, it is tied up), it is for these reasons that SIPPs should be reserved for those with expertise in financial investments.
If you’ve been paying into a SIPP or other pension that has been managed by your financial advisor, and you’ve lost money, you may be able to make a mis-sold SIPP claim.