SIPPs and Protected Rights

SIPPs, Protected Rights and the Department for Work and Pensions DWP

SIPPs (self invested personal pensions) have been given the all clear by the Department for Work and Pensions DWP to hold protected rights (PR).  This means that all pension savers who have a SIPP no longer have to keep their protected rights in a separate pension policy, but will be able to combine it with their other pension savings in a single SIPP.

This allows advisers and providers to simplify the information they provide to clients, who are often confused by the need for separate investment strategies for non-protected rights and protected rights funds.

Our view

This is good news for those who understand how a SIPP works, protected rights, what the charges are and what they can use their pension fund for.  They will be of little use to those who do have the time or the resources to use a self invested personal pension plan SIPP.

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Learn more about SIPPs and Protected Rights and related topics in the Pensions Adviser Channel

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