Self Directed Pensions & ARF’s

Uncategorized on March 10th, 2010 No Comments

The latest development in the world of pensions is self-directed options. While these have been available for some time they have traditionally been aimed at a very small portion of the marketplace. Now providers have opened up these attractive options to a wider market, which means many more people can get in on the act.

The idea behind self-directed options is that people can manage their own retirement funds personally. Individuals can now have greater control by in effect directing the placement of their funds themselves.

Deposit Accounts allows you the freedom to place your pension money in a nominated deposit account, which can be a great short-term option for you.

Exchange Traded Funds ( ETF’s) & Quoted Shares allows you to buy and sell shares through a pension arrangement thereby giving you the following tax benefits:

Tax relief on pension contributions

No Capital Gains Tax on growth

No Income Tax on dividends received

Access to Direct Property through a pension arrangement again allows for efficient tax planning while allowing you to buy residential or commercial property within your pension fund. Providers have recently opened up this option with the client being in complete control by personally selecting the property they wish to invest in.

Traditional Insured Funds are available across many products on the marketplace but this new development means you can invest your money in anything from a ” vanilla” Managed Fund to self-directed options, and all through one tax efficient pension product.

Historically these options were only available for Company Directors via Small Self Administered Schemes ( SSAS ). However these options are now available via the following Individuals:

Company Directors and Employees via Executive Pension Plans

Self-Employed via Personal Pension Plans

Post Retirement Planning via Approved Retirement Funds ( Arf’s & Amrf”s)

Buy Out Bonds / Personal Retirement Bonds

In general self-directed options allow you more flexibility and choice. Even if you’re not interested in these options right now you may be in the future. Choosing a Pre or Post Retirement Product now that can give you these options in the future, should you need, them is well worth considering.

Warning: The value of your investment may go down as well as up
Warning: Past performance is not a reliable guide to future performance
Warning: Funds may be affected by changes in currency exchange rates

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