Contributions
TD SIPP Benefits
- Tax relief on contributions to your TD SIPP depending on your tax rate
- Accessible online platform for trading and monitoring your portfolio
- Create your own personal retirement strategy
- Full range of investment options; UK & international equities, bonds & gilts, investment trusts, unit trusts, OEICs, REITS and Exchange Traded Funds
- No initial set up fee
- 24/7 access to market information and research tools provided by Morningstar®, including tools like Asset Allocator, Fund Screener, X-Ray and Quickrank
- Multi currency facility, hold cash in 9 major global currencies (GBP, USD, CAD, EURO, SEK, CHF, HKD, AUD & SGD)
- Set up automated monthly investments into selected investment types with our Regular Investing option
One of the benefits of a TD SIPP is the flexibility it gives you when it comes to contributing to your pension. Not only can you choose to contribute regularly or with a lump sum, you can also transfer in existing plans (including protected rights) so you get an accessible consolidated view of your retirement fund in one place.
If you have any doubts about the suitability of a TD SIPP or transferring any existing pension plans into a TD SIPP, you should seek advice from a suitably qualified financial adviser.
SIPP Contributions and Allowances
Once your TD SIPP is set up you can pay single (one-off) contributions or regular contributions at any time subject to a minimum of £400 (net) for single contributions and £40 (net) for regular contributions.
You can receive tax relief on your personal contributions up to 100% of your earnings. For example, if your annual salary is £30,000 you can contribute £24,000 (net) into your TD SIPP. We will claim tax relief of £6,000 and this will be credited to your SIPP on receipt.
If you have no UK earnings, or are earning less than £3,600 a year you can still pay in contributions up to £2,880 (net) and we will claim tax relief of £720.
There is a limit on the contributions you can pay and receive tax relief. The annual allowance is currently £50,000 although this is likely to change in the future.
How much you should contribute to your TD SIPP will depend on your circumstances and aspirations for your retirement. If you are unsure how much to contribute to your TD SIPP follow the link to the The Money Advice Service Pension Calculator.
Simple, Fast and Easy Contributions
With a TD SIPP you can contribute easily to your pension fund:
- Your employer can contribute by direct debit
- You can sell shares and buy them back into your TD SIPP (this is known as a Bed and SIPP)
- You can set up a regular direct debit to pay into your TD SIPP from your bank account
- You can easily make additional contributions online from your debit card
- You can make a direct contribution from one of your other TD Direct Investing accounts (excluding Trading ISA)
- You can invest in selected investment types on a monthly basis automatically within your TD SIPP with our Regular Investing option.
Transfer your pension(s) into one easy manageable SIPP
If you want to take control of your existing pensions and consolidate all of them into one self managed pension, the TD SIPP could be for you.
We do not charge a transfer fee, but there may be an exit fee or penalty from your current provider.
Before transferring to the TD SIPP you should check that you will not lose any valuable benefits such as guarantees or bonuses by doing so. If you are unsure you should seek financial advice. We are unable to accept a transfer from a final salary scheme unless you have received financial advice.
We can normally accept transfers from most types of pension scheme:
- Protected Rights Pensions
- Personal Pension Plans
- Other SIPPs
- Stakeholder Pension Plans
- Retirement Annuity Plans
- Free Standing Additional Voluntary Contributions (FSAVCs)
- Executive Pension Plans (EPPs)
- Occupational Money Purchase Plans
- Small Self Administered Schemes (SSAS)
You can choose to transfer your pension in the form of a cash payment or alternatively you can transfer the assets you already hold, providing these assets can be traded in the TD SIPP.
To proceed with the transfer of your pension, please complete the details of your plan using our online application. Please also download and return the SIPP Transfer Form to start the transfer process.
Receiving Advice
The TD SIPP is an execution only SIPP.
TD Direct Investing, AJ Bell Management Limited and Sippdeal Trustees Limited is not authorised to provide any advice on your SIPP. We understand that you may wish to seek advice at important key events throughout the lifecycle of your TD SIPP.
If you need advice you should contact a suitably qualified financial adviser. You can ask TD Direct Investing to make payment for this advice on your behalf from within your TD SIPP. Please download and complete our Financial Adviser Remuneration Form to authorise TD Direct Investing to make a payment to your financial adviser.
Alison
Working Mum, Forty Something
Alison is a full time solicitor who has worked in a number of firms over the years and accumulated a number of pensions. A TD SIPP was appealing to her as and after consulting with her financial adviser she decided to transfer in her various pensions from previous employers and manage them together in one place. She doesn't have the time to keep up with several different pension providers and seeing her portfolio working for her gives her the confidence that she will have enough money to retire comfortably.
The other incentive for her is that with a relatively high and secure income she can contribute regularly and take advantage of the tax benefits. As a higher rate tax-payer earning £50,000 per year she claims higher rate tax relief on her contributions, which means that for every £800 she contributes to her SIPP she can claim an additional £200 tax relief through her self assessment. The total amount of her investment is £1,000 at an effective cost of £600.
This case study is for illustrative purposes only and isn't based on a real life example.