Pensions & Divorce – Self Invested Personal Pensions – What are the risks?
Posted August 20th, 2010
Self Invested Personal Pensions (SIPPs) are designed to allow individuals to control their pension, using a wide range of investments. Their popularity has soared in recent years and they are becoming more and more common when dealing with pensions on divorce.
However, they have only recently (April 2007) become regulated and there are risks associated with SIPPs which are worth knowing. This is especially so if you know that the financial aspects of your divorce will take time to be agreed.
The list below illustrates the broad range of investments available.
• UK and overseas shares
• Gilts and overseas securities
• OEICs and unit trusts
• Exchange Traded Funds
• Investment Trusts
• Insurance Company Funds
• Unquoted shares
• Warrants
• Hedge funds
• Deposit accounts
• Commercial Property
With such a wide range of investments available and the potential for these to fall in value over time, it would be prudent to understand what lies beneath. I will expand on this issue in future blogs so watch this space.
If you would like an impartial review of the SIPP involved in your divorce, please contact us on 0800 092 1229 or email advice@thedivorceifa.co.uk
