Our award-winning active money SIPP is a pension with added flexibility. It gives your clients more choice when it comes to how they invest, manage their money, or take their benefits than they would get with a conventional personal pension.
With the active money SIPP, your clients have access to all of the funds available with the active money personal pension plus a full range of mutual funds. What's more, they can choose from a range of other investments including bonds, shares, gilts and commercial property. The value of investments can fall as well as rise. Some investments, such as property, may take longer to sell.
The active money SIPP offers flexible ways for your clients to access their money from the age of 55 (or 50 until April 2010). They have the choice to take a tax-free lump sum, portions of money as and when they need it, or a regular income - this is available with Standard Life's unique dripfeed drawdown option. To find out more, read our brochure on flexible income options (code SLSIP132).
The administration fees that clients pay with the active money SIPP depend on the investment options and features they choose. For further information on our charges please speak to your Account Manager or Standard Life representative, or read this brochure (code SLSIP20).
Your clients may find that by consolidating their investments under a SIPP, they pay fewer administrative charges than if they held them with different providers. Of course, this depends on charges payable when switching investments and they need to consider if they are giving up any benefits with existing plans.
There is the option to make regular payments on a monthly or yearly basis, as well as one-off payments and transfers from other pensions. Clients can change payment amounts at any time, and stop and restart payments too. The minimum gross contribution they can start the active money SIPP with is £300 per month, £3,000 per year or £10,000 as a single payment. The minimum contribution to start a plan via transfers is also £10,000.
Daniel is a 31–year–old freelance business analyst, earning £40,000 a year. He recently bought his first property — a two–bedroom flat in a modern development right in the heart of Bristol city centre. For him, the location of his flat is key as he loves the buzz of city living and the fact that he lives so close to many of his clients.
At this stage in his life, Daniel is making the most of his disposable income by splashing out on good restaurants and nights out. Every year, he likes to go on a surfing holiday and a couple of golfing weekends with his friends. He enjoys life’s little luxuries, so he’ll usually stay in good accommodation.
At the moment, Daniel’s not interested in spending too much time managing his money. He’s just started thinking about investing his money rather than simply saving — particularly when it comes to his pension. While he normally researches financial products online, he feels he needs some additional guidance from an expert in planning for his future.
He’d like to start putting away money for tomorrow but as he wants to carry on enjoying a full social life, he only wants to invest £200 per month right now. This makes the active money personal pension the ideal starting point for him, as it offers him the opportunity to invest in a pension that is easy to manage. And, later on in life when he wants to become more involved with his money, he has the flexibility to switch to the more hands–on active money SIPP.
This case study is not based on a real life example and is for illustration only. Standard Life does not accept any responsibility for advice given based on this case study. Any advice given is the responsibility of the adviser. Other arrangements may be equally valid.
As a 40–year–old working mum of three, Amanda leads a hectic life. She works four days a week as an accountant, while her husband is a full–time PR consultant. As her role is part–time and she is able to work more flexible hours, she takes on the bulk of the childcare.
Both of them are passionate about their careers and work hard, but they like to make the most of their leisure time too, limited though it is. They love to travel and are keen to take the kids abroad as often as possible — at least once a year. Both of them love wine tasting and walking, so France and Italy are favourite destinations.
Amanda and her husband have always been careful with their money, saving as much as possible and searching out the best mortgage deals. Now they’re starting to do more with their money — moving from saving products towards building a portfolio of investments. They’re keen to build up a substantial pot of money for the future — they’re already putting money aside for their children’s school fees, as well as for their own retirement.
Amanda has a couple of old company pensions from her previous jobs, but she’s now looking for something with a bit more flexibility. While she’s keen to prepare for her financial future, she wants an easy–to–manage pension that gives her complete control over her payments — so the active money personal pension offers her the flexibility she needs. What’s more, she might even be interested in combining her various pension investments in the future, so it would be good to have that option available too.
This case study is not based on a real life example and is for illustration only. Standard Life does not accept any responsibility for advice given based on this case study. Any advice given is the responsibility of the adviser. Other arrangements may be equally valid.
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