Can I hold Abundance Debentures with my existing SIPP provider?
Debentures are eligible to be held in a Self Invested Pension Plan (SIPP) at the discretion of the provider. There are a number of SIPP providers that allow you to invest through your Abundance account. Please contact us if you would like the current list of providers that will accept our Debentures in a SIPP.
You can also set up an Abundance Pension to complement your existing SIPPs, as there is no restriction on the number of separate SIPP accounts you can hold.
Can I hold an Abundance Pension alongside my existing SIPP or other personal pension?
Yes you can hold multiple SIPP and pension accounts, which means you can set up an Abundance Pension to run alongside your existing SIPP holdings with other providers. Please note that the Abundance Pension is a single asset SIPP, which means you can only hold Abundance Debentures in an Abundance Pension. You will need to set up a separate SIPP account with another provider if you wish to hold other investments within a SIPP, which will attract fees and charges.
Is an Abundance Pension right for me?
What you do with your pension is an important decision. There are new options and new flexibilities available at retirement — but also more risks.
It is vital to understand your options, and take appropriate guidance or personal advice if you are not sure.
The Government’s new Pension Wise service offers free, impartial guidance to help you understand your options at retirement. You can access the guidance online at www.pensionwise.gov.uk, over the telephone on 030 0330 1001 or face-to-face. It is not personal advice.
What are the fees on the Abundance Pension?
As with all personal pensions, there are fees chargeable on the Abundance Pension. You can find details of the fees and charges that apply to the Abundance Pension here.
Why do I have to invest a minimum of £5,000 in an Abundance Pension?
Although you can invest in any project on Abundance from £5, we have had to place a minimum investment of £5,000 for the Abundance Pension. This is because fees and charges apply on the Abundance Pension, and if you have invested funds of less than £5,000 these fees will have a significant impact on your returns and so will reduce the benefits of using the Abundance Pension.
As a SIPP, the Abundance Pension attracts tax benefits which reduce the effective cost of this initial investment. New contributions into the Abundance Pension attract an immediate tax relief of 20%, which is deposited directly into your Abundance Pension for investment, meaning you only need to make new contributions totalling £4,000 to meet the minimum investment level. Higher rate tax payers can also claim an additional 20% tax relief on contributions via their tax return, further reducing the effective cost of this initial investment to £3,000. Transfers into the Abundance Pension from another pension need to be a minimum of £5,000 as all applicable tax reliefs have already been applied to these contributions from your existing provider.
Please note that tax relief levels on pension contributions are subject to change by HMRC. There is also a maximum amount of pension subscriptions that you can make each year, which depends on your tax situation and the value of subscriptions you have made into other pensions. The Abundance Pension Key Features document has more details on maximum investment levels you can make in the Abundance Pension.
Is Abundance a pension provider?
Abundance is not a direct pension provider, and doesn’t provide pension advice. We are authorised to arrange pensions, which is why we work with Gaudi Regulated Services Limited (Gaudi) to provide the Abundance Pension.
Who are Gaudi Regulated Services Limited (Gaudi)?
Gaudi provide the Abundance Pension. Gaudi are a Trustee and SIPP Administrator and provide branded pension products for investment providers like Abundance. They currently manage around 4,000 open SIPPS. Gaudi will provide support to Abundance Pension holders on some technical matters relating to their pensions, but in the first instance Abundance Pension holders should contact us for support.
What is a SIPP?
A self-invested personal pension (SIPP) is a DIY pension that lets you save for your retirement and also receive additional benefits in the form of tax incentives.
A SIPP offers greater flexibility than some more traditional pensions, as you can choose a range of investments and assets to invest your pension funds in, rather than being restricted by the options selected by your pension manager on your behalf.
Because a SIPP is a self-invested pension it means you are in control of the investments you choose to make within your pension and, as with all investments, this carries risk. If you are in any doubt as to whether a SIPP is right for you, please seek independent financial advice.
How does a SIPP work?
A SIPP enables you to hold either a single asset or mixed assets (depending on the provider) within a single wrapper, which also carries tax benefits, as you pay the money in before income tax is taken off.
In practical terms, this means that contributions you make into your SIPP will have an instant tax relief of 20% applied at source, meaning your capital that is available for investment will be increased by 20%. Higher rate taxpayers can claim an additional tax relief of up to 20% retrospectively via their tax return. If you make a transfer from another pension plan you will not receive any tax relief as you will have already received the tax relief previously.
A SIPP operates in two primary phases. In the initial phase you make contributions or transfer existing pension funds to invest within your SIPP. During this period all investment income (and, in the case of our Debentures, capital repayments) are kept within the SIPP wrapper for reinvestment.
At age 55 you can start to withdraw your investment and capital returns as a pension income, although you can continue to reinvest your investment income if you choose. It is at the point of withdrawal that you pay tax on your income, at your marginal rate.
It is also worth noting that, under current pension regulations, you are permitted to withdraw up to 25% of your total pension pot as a tax free lump sum at age 55, though you should consider carefully (and take investment advice where appropriate) as to whether this would be the right decision for you and your retirement plans.
How do I start a SIPP?
You can either start a SIPP from scratch with money that hasn’t been held in a pension, or you can move it from an existing pension scheme to a SIPP.
The first step is setting up an account with a SIPP provider. You can set up a dedicated Abundance Pension using this simple process.
Upon receipt of your application forms we will set up a designated SIPP portfolio on our platform to enable you to manage your SIPP investments alongside any other investments you hold with us.
As soon as your SIPP account is open you can fund your SIPP by transferring money from existing pensions, or making new contributions as you wish, up to maximum annual limits set by HMRC. You can then get started making investments into projects through Abundance to create your pension income.