A pension is a long-term investment that aims to build a fund for your retirement in a tax efficient way. This can be used to provide you with an income when you retire and can normally be accessed from the age of 55.
Fidelity offers a type of pension known as a self-invested personal pension (SIPP).
A SIPP is a tax-efficient way to save for your retirement. You normally get tax relief on your personal savings into a SIPP at the highest rate of tax you pay. The investments in your SIPP will grow free of capital gains tax and any income tax. The 10% tax credit on UK shares dividends cannot be reclaimed.
Even those who are non taxpayers can contribute up to £2,880 which is topped up up to £3,600 by receiving tax relief at 20%.
In addition to the tax benefits, you have more flexibility and control over your savings and where they are invested. You can choose (with guidance help if you like) investments that suit your personal needs and vary your investment mix as your circumstances change.
You will be able to access your pension savings once you reach the age of 55. There are several different ways you can access your savings, and you can chose one, two or a combination of all of the options available to help achieve the right level of retirement income for your needs.
This information is not investment advice or a recommendation for any particular product, service or course of action. Pension and retirement planning can be complex, so if you are unsure of the suitability of a pension investment, retirement service or any action you need to take, please contact Fidelity’s Retirement Service on 0800 084 5045 or refer to your financial adviser.
The value of investments can go down as well as up and you may get back less than you invested. Eligibility to invest into a pension depends on personal circumstances and all tax rules may change. With pension products you will not be able to withdraw money until you reach age 55.