Pension

Question 1

SIPP

Answer 1

self-invested pension plan

allow you to control the specific investments that make up your pension fund

greater flexibility with the investments you can choose

higher charges than other personal pensions or stakeholder pensions

more suitable for large funds and people experienced in investing

make it easy for you to manage your pension

Question 2

stakeholder pension

Answer 2

low and flexible minimum contributions

capped charges

default investment strategy

Question 3

full SIPP

Answer 3

offer widest choice of investment, but highest charges

only suitable for people with pension funds (between £150,000 and £450,000)

Question 4

basic SIPP

Answer 4

wide range of investment choice

don’t include owning property directly, offshore funds, or investing in unquoted shares

suitable for people with smaller pension savings to invest

“execution only” i.e. take no advice from the firm, makes charges lower

Question 5

Section 32

Answer 5

Section 32 policy is bought from an insurance company using funds from a registered pension scheme

used if workplace scheme is about to wind up, and/or member has left employment