Flexibility over where your money is invested to fit in with your overall investment strategy

Self-Invested Personal Pensions are likely to be most suited to experienced investors who are comfortable choosing and managing investments themselves. You need to have the necessary skills to invest your own pension fund, and you must remember that the value of investments can fluctuate, so you could get back less than you invested. 

Investing your retirement savings in a SIPP may not be for everyone, however. If you are uncertain as to what type of investment to invest in, then you should seek professional financial advice.

Although SIPPs offer greater flexibility than traditional pension schemes, they often have higher charges, and the time involved in research means they may be more suitable for experienced investors.

Most SIPPs allow you to select from a range of assets, such as:
• Unit trusts
• Investment trusts
• Government securities
• Insurance company funds
• Traded endowment policies
• Some National Savings and Investment products
• Deposit accounts with banks and building societies
• Commercial property (such as offices, shops or factory premises)
• Individual stocks and shares quoted on a recognised UK or overseas stock exchange
These aren’t all of the investment options that are available – different SIPP providers offer different investment options. Residential property can’t be held directly in a SIPP with the tax advantages that usually accompany pension investments.

However, subject to some restrictions (including on personal use), residential property can be held in a SIPP through certain types of collective investments, such as real estate investment trusts, without losing the tax advantages.