A SIPP is a Self-Invested Personal Pension, a type of retirement savings plan that enables the policy holder to choose the investments held within it and to manage them themselves.

A SIPP is most suited to the more experienced investor, those comfortable with their own investment decisions and who want to access a wider range of investments.

They’re also suitable for business owners with property assets, people with substantial pension “pots”, people who make significant pension contributions or those who have a financial adviser making investment decisions on their behalf. if you’re thinking about investing in SIPP or wondering if a SIPP is right for you, it’s a good idea to speak to a financial adviser.

variety of allowable assets that can be held within a SIPP. These include the shares of companies listed on a recognised stock exchange, government gilts and corporate bonds, investment funds, exchange traded funds, National Savings products, cash deposits, commercial property and land.

If you have any questions relating to what’s allowed you should speak to a financial adviser. 

In many ways, the benefits of having a SIPP mirror those of having a personal pension plan. You can make one-off and regular investments and you can enjoy at least 20% and up to 40% tax relief on your savings.

You can pay into a SIPP up until age 75, you can take a 25% tax free lump sum when you draw your pension and it can form part of your inheritance tax planning.

However, the main benefit of having a SIPP is that you can take control of what you invest in.

There are no real “downsides” but a SIPP is not suitable for everyone. As with all pension plans, your money is locked in until at least age 55 and you have to pay tax on lump sum withdrawals over and above your 25% allowance.

What you should know is that SIPPs are invariably more expensive than normal pension plans and that self-management your investments could mean poor investment decisions.

If you’re worried about whether a SIPP is right for you, don’t be shy: speak to a financial adviser.

SIPPs allow for a wider range of investment options than personal pensions and this is their main “selling point”, the underlying assumption being is that “SIPP style” investments offer better growth prospects than regular funds.

It’s not about “best”, it’s about personal suitability, as if you’re unlikely to utilise all the benefits a SIPP can offer they’re probably not for you.

Before making a decision, you should take financial advice.