For the individuals who prefer to have complete control over their investment portfolio, a SIPP is the more desirable option over a personal or occupational pension plan. Rather than limiting oneself to a smaller selection of investment choices, SIPP holders are free to access a vast array of different investment opportunities, whether they be equities, commercial property or trusts.

SIPP holders can also draw down earlier without penalty than most average policy holders as the SIPP allows you to withdraw up to 25% of your lump sum, tax free at the age of 55.

By consolidating your pensions into a wrapper you can eliminate the multiple charges you may be liable to if you have various pension schemes.

Many people may have a few or more pensions with current and previous employers, but no real record of their performance. By utilising a SIPP platform your investment becomes easier to manage, more transparent and can reduce fees.

Upon the event of your death, most salary-linked pension schemes will pay the remaining sum to a spouse of family member, however there can be some restrictions governing to whom these benefits can be passed onto. If you have no spouse or dependents at the time of your death the remaining sum while effectively be lost with you.

However with a SIPP you can designate your retirement savings to beneficiaries of your choice. It is quite common to see a pension scheme holder who may be widowed or have adult children and would like to make sure that someone benefits from their savings.

Personal or occupational pension schemes usually do not allow income withdrawal as the savings are either paid in regular fixed amounts or converted into an annuity. SIPPS are much more flexible as they allow you to draw down benefits as and when you please and can help minimise tax liabilities.

SIPPS can also be used to fund for further investments, such as commercial property, which regular pensions schemes are unable to do.