A SIPP is a Self-Invested Personal Pension - a type of personal pension scheme.

In comparison with other pension products SIPPs can offer greater control to the individual investor. A SIPP provides you with a personal tax-wrapper for your pension savings. This ‘wrapper’ holds your investments until you retire and start to draw a pension income. A SIPP allows you to invest your money how you wish in order to save for your individual retirement needs.

A SIPP can be held alongside other personal and occupational schemes, providing that your total contributions are within limits laid down by the Inland Revenue.

SIPPs were primarily designed for people who want to manage their own retirement fund by dealing with their own investments. If your retirement planning needs are slightly unusual or you simply want more flexibility about the investments you make then a SIPP may be an attractive alternative to more traditional pension arrangements.

As with any pension fund, you cannot take money from the fund until age 50, this will rise to age 55 by 2010. On reaching retirement age you can now draw an income from their pension fund rather than buying an annuity straightaway.

Most SIPPs allow investment in a range of assets including commercial property. The FundsNetwork SIPP provided by Standard Life offers you a choice of over 1000 funds from 56 fund companies, including top names such as Jupiter, New Star and Invesco Perpetual. It's great value too, with no initial charges or switch fee on funds and although the usual annual fund management charges will still apply, these can be significantly reduced via Cavendish Online’s renewal commission service.