Self Directed Personal Pensions

A Self Directed Personal Pension is a structured product that allows the client a more bespoke investment strategy than is available with the traditional personal pension. Conventionally, most pension plans have invested in managed funds which pool investor’s monies and invest in shares, property, bonds and cash. Self Directed Pension Plans are designed for clients who want more flexibility and control over the assets backing their pensions. 

Self-Directed Pensions were introduced to allow the client to invest in property, shares, bonds or deposit accounts of their choice. For example, a client could decide to invest their money in a pension fund which would in turn, purchase a property by way of a combination of a deposit from the pension fund and a mortgage. The client makes their regular contribution to the pension plan to cover the cost of managing the property and the mortgage repayments. The rental income received will go into the pension fund. 

Some clients who are already exposed to property may wish to use their pension fund to purchase shares of their choice. It is also possible for clients to invest their regular contributions into their pension fund and get a stockbroker to act on their behalf in terms or purchasing, holding and selling the shares, with transaction costs met by the pension fund.

Depending on your personal circumstances, in particular the balance between your pension requirements, your tax situation and the level of control you seek on your investments, there are many reasons to invest in a Self Directed Pension.