Five Sipp facts not many people know
By Kirsten Hastings, 31 Jul 17
An estimated one million people have opted for self-invested personal pensions (Sipp) as they offer a wide choice and the freedom to invest almost anywhere. Hargreaves Lansdown have put together some of the lesser-known facts about the increasingly popular retirement vehicle.
There is a common myth that when people die, their pension dies with them. The reality can be very different.
Any money left in a Sipp can normally be passed to beneficiaries free of inheritance tax. Any withdrawals they then make will usually be tax free if the Sipp owner died before turning 75.
If they die at 75 or older, any withdrawals will be subject to your beneficiaries’ marginal rate of income tax.
Tags: Hargreaves Lansdown | IHT | Inheritance | Sipps
