Gloucestershire IFA: Independent financial services brokers based in Cheltenham offer lifetime financial planning and wealth management

Cheltenham Independent Financial Advisers Ltd (FSA number 494404) is an appointed representative of Financial Investments Ltd which is authorised and regulated by the Financial Services Authority. The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK. No investment decision shouild be taken based on the content of this site. Always take full individual advice first. The regulations governing tax rates and investments may change in the future.

Alternatively Secured Pension (ASP) and the Family SIPP

Despite the recent debates on whether Alternatively Secured Pension (ASP) should be available to everyone, it was introduced at A-Day as an alternative option to annuity purchase for those aged 75 and over.

Rather than being forced to purchase an annuity, ASP now offers greater choice and flexibility for those over the age of 75

It enables them to continue drawing an income directly from their fund in a similar way to an Unsecured Pension

ASP will not be suitable for all individuals

ASP provides more control over income and investments than annuities

So when would ASP be suitable?

ASP may be the preferred option for those individuals looking to retain control over their investments, as their fund remains invested

Once an individual is in ASP, they can still choose to buy an annuity at any time so it may also be used to defer annuity purchase as opposed to deciding against it completely

ASP offers improved death benefits

One downside is it may provide less income than if an annuity had been bought in the first place

Family Self Invested Personal Pension (SIPP)

Family SIPP is the term used to describe passing on pension funds from ASP.

If the member dies while taking ASP, the remaining fund will be used to provide income for any financial dependants

ASP and the tax ramifications is a complex area. It's a good idea to get professional advice because what you decide will affect your pension income for the rest of life

These notes ("Alternatively Secured Pension (ASP) and the Family SIPP") are intended to provide a general appreciation of the topic and it is not advice. Guidance should be sought from a specialist like ourselves who is qualified to advise in your specific circumstances.

For more information on Personal Pensions, please contact Cheltenham Independent Financial Advisers Limited on 01242 269656 or email us at info@cheltenhamifa.co.uk. One of our advisers will be happy to assist you.