The scheme is designed to pay scheme pension allowing an accumulated fund to pay pension benefits rather than facing an eventual assessment for tax.
There are no restrictions on the number of members and members can choose to act as trustees. Members’ funds can also be invested individually or pooled to follow a common investment strategy. The IPS Family Sipp can also accept transfers of protected rights also.
Earlier this year, Axa entered into the Family Sipp sector and commentators predicted more providers would follow in offering as the specialised sector grew. Hornbuckle Mitchell and Rowanmoor also offer a family Sipp.
IPS business development director Richard Mattison says: “There is a very real demand for this type of product which has been growing over the last couple of years and we now feel the time is right to enter the marketplace.”
Beacon Asset Management senior independent financial consultant Graeme Bone says: “The market has been waiting for such a solution to the current challenges faced by clients in today’s retirement planning landscape.
“This is very important for many of our clients who are directors of small to mid-sized companies, often with substantial sums that they would like to try to protect for their spouses, children and grandchildren.”