Self Invested Personal Pensions (SIPPs)

These are a step on from personal pensions and give a wider investment choice, usually at a higher cost. For those wanting to pick and choose the funds in which their pension invests, a SIPP may be a suitable choice.

These benefit from the same tax relief as standard personal pensions, providing the investments are on HM Revenue & Custom's approved list. This includes life insurer's pension funds, commercial property, unit and investment trusts, equities, cash deposits, and futures and options.

Dealing charges and management fees vary dramatically between providers, and can be hefty; making SIPPs better suited to larger pension funds.