Self Directed Pension Options
The latest development in the world of pension is self-directed options. While these have been available for some time they have traditionally been aimed at a very small portion of the marketplace. Now providers have opened up these attractive options to a wider market, which means many more people can get in on the act. The idea behind self-directed options is that people can manage their own retirement funds personally. Pension clients can now have greater control by in effect directing the placement of their funds themselves.
The assets pension clients can now invest in are:
• Traditional Insured Funds
• Quoted Shares
• Direct Property
• Deposit Accounts
Traditional Insured Funds are available across many products on the marketplace but this new development means you can invest your money in a Managed Fund as well as in self-directed options, and all through one tax efficient pension product.
Quoted Shares allows you to buy and sell shares through a pension arrangement thereby giving you the following tax benefits.
• Tax relief on pension contributions
• No Capital Gains Tax on growth
• No Income Tax on dividends received
Access to Direct Property through a pension arrangement again allows for efficient tax planning while allowing you to buy residential or commercial property within your pension fund. Providers have recently opened up this option with the client being in complete control by personally selecting the property they wish to invest in.
Deposit Accounts allows clients the freedom to place your pension money in a nominated deposit account, which can be a great short-term option for you.
In general self-directed options allow for more flexibility and choice for you the client. Even if you’re not interested in these options right now you may be in the future. Choosing a pension scheme now that can give you these options in the future should you need them is well worth considering.
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