Richard Rice, investment adviser at Moneyfarm, said personal pensions, which included self invested personal pensions, were not in Reeves’ crosshairs.
Anyone with a cash ISA faces having to close their account and ditch to a rival saving method, it has been warned, as the Labour Party Chancellor Rachel Reeves eyes a cut.
Richard Rice, investment adviser at Moneyfarm, said personal pensions, which included self invested personal pensions, were not in Reeves’ crosshairs.
Rather than a cash ISA, which could be cut from a £20k allowance under a Labour Party shake-up, savers could use these methods. Mr Rice said: “While this move restricts the discretionary mandate of pension fund managers and prompts debate over political influence in asset allocation, it’s important to clarify that individual private pension holders are unaffected as they retain full access to global markets and complete investment discretion.
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Mr Rice added: “For savers, especially those conscious of the UK’s historic underperformance relative to global peers, the flexibility and global reach of private pensions remain a critical advantage.”
Money Saving Expert advises: “Only get a SIPP if you know what you’re doing. There are risks with any type of investing, as unlike with normal savings, your investment can go down as well as up.
“Most SIPPs are managed via investment platforms. These allow you to buy and sell investments, and usually come with fees. ‘DIY’ platforms let you manage your own investments, while ‘Robo’ platforms manage them for you based on your preferences.”
A self-invested personal pension (Sipp) is essentially a do-it-yourself pension. Unlike other types of private pensions, where you usually rely on the scheme provider to decide where your retirement savings should be invested, a Sipp puts you in the driver’s seat.
You’ll be taking on responsibility for choosing and managing your own investments, so you’ll need to have the time and confidence to do this.
The income you’ll receive when you retire depends on how much you contribute, how well the underlying investments perform and how you decide to access your money.
