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What Is The Difference Between A SIPP And Stakeholder Pension?

The main difference between a SIPP and a stakeholder pension of the level of flexibility offered with a SIPP. Stakeholder pensions were introduced as a simple pension which was cheap and accessible for those on lower incomes. SIPP’s on the other hand, have traditionally been seen as more suitable for those who already have investment ISAs and, in many instances, who pay a higher rate of tax.


With a SIPP, you are responsible for choosing the way your funds are invested, however with a stakeholder pension, you need no investment experience and generally need little involvement. If you prefer that increased level of flexibility and control, however, a SIPP may well be the most suitable type of pension for you. As always, however, we strongly recommend you speak with a financial advisor before making a decision as to the type of pension which you opt for.

Please note the value of investments, and any income from them can go down as well as up and you may not get back your original investment. We do not offer advice about the suitability of our products or any investments held within them. Should you require financial advice you should consult a suitably qualified financial adviser


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