The IPS family Sipp aims for maximum flexibility, with no minimum investment, commitment to regular contributions or restrictions on the size of the group. The Sipp can also accept transfers of protected rights, which is the term used to describenational insurance rebates that are built up and paid to people who are contracted out of the state second pension.
The Sipp is set up as a trust, with members appointed as trustees. All investment requests and applications must be signed by all the trustees.
All HMRC permitted investments are allowed within the Sipp, including commercial property. When purchasing property, The IPS Partnership makes no restrictions or requirements on the use of a specific solicitor, mortgage lender or property manager.
The range of benefit options available under the Sipp include buying an annuity, unsecured pension, alternatively secured pension and scheme pension. Scheme pension is a way of increasing income, particularly for members who are drawing down income above age 75 and those in poor health. The IPS Partnership says scheme pension is becoming more popular as a way of controlling the amount drawn from a retirement fund, and will use all the accumulated fund to pay pension benefits, rather than facing an eventual assessment for tax. Phased retirement is also available.
The IPS family Sipp is the latest in a line of product launches catering for this niche market. Curtis Banks and Axa Winterthur have similar products that could provide competition. However, Curtis Banks provides the best comparison as it shares The IPS Partnership’s lack of a minimum investment while offering the choice of investing individually or pooling investments.
In contrast, Axa Winterthur’s family suntrust imposes a £200,000 minimum investment for each scheme and members’ investments must be pooled, with no option to follow individual strategies.