Introducing SIPP

You can use our SIPP in two basic ways:

1. Saving for your retirement

A SIPP is an investment plan that allows you to save in a tax efficient way for your retirement.

You can make regular payments, single payments or transfer one or more other pension arrangements to it. If you are employed, your employer can also pay into the plan.

You can invest in a wider range of funds and investments than with other types of pension, including funds from us, funds from other companies, unit trusts, OEICs, stocks and shares or commercial property.

Please note: the value of your investments can fall as well as rise. Investments such as commercial property may take longer to sell than others and you will need to take this into account when you consider taking your benefits.

2. Taking pension income

A SIPP allows you to take your benefits in a number of ways, including drawing an income directly from the fund you have built up. This is known as income drawdown (or pension fund withdrawal). Benefits can be taken in stages, as required, leaving the remainder of the fund invested. This allows you to take advantage of continuing investment performance and avoids locking you into one particular annuity rate. The options for taking your benefits are:

• Income drawdown, plus tax-free lump sum(s).
• An annuity or annuities, plus tax-free lump
  sum(s).
• A mixture of annuities, income drawdown and tax-free lump sum(s).

There are some risks associated with drawdown such as investment growth, mortality cross-subsidies and levels of withdrawal. For more information click here.

You can now continue to take income drawdown after age 75. This is known as Alternatively Secured Pension (ASP). The rules for how much income drawdown you can take change when you reach age 75.

Tax and legislation are liable to change. The information given here is based on our understanding of law and HM Revenue & Customs practice at the date of publication. Tax reliefs may be altered and their value to the investor depends on their financial circumstances.

You must take financial advice before starting a SIPP with us. To find out how to get advice visit How do I contact Standard Life?

The level of benefits you can take from the SIPP with income drawdown will depend on several factors, including the performance of your investments. The value of investments may go down as well as up.

Before buying a product you need to be aware of the risks and commitment involved. Take a look at our SIPP Key Features document for more information.