SIPP Risks

You need to be aware that there are risks involved in taking out a TD SIPP and we cannot guarantee the value of your pension fund and resulting benefits for a number of reasons.

Some of these are detailed below:

• The value of your SIPP when you draw benefits cannot be guaranteed as it will depend on investment performance.
• The value of fund units can go down as well as up and investment growth cannot be guaranteed.
• The tax benefits and governing rules of SIPPs may change in the future.
• The level of pension benefits payable cannot be guaranteed as they will depend on interest rates when you start taking your benefits.
• The value of your SIPP may be less than you expected if you stop or reduce contributions, or if you take your pension earlier than you had planned.

You may be able to deal in a range of investments, each of which may carry a different level of risk.

The cost-effectiveness of your SIPP may depend on a number of factors:

• The size of your SIPP in relation to the initial and ongoing costs
• The type of investments held
• The frequency with which you buy and sell fund units
• The size of the transaction you undertake.

If you have a smaller fund or buy and sell excessively, the value of your SIPP may be eroded and the costs may be disproportionate to the value of the SIPP. Multiple investments and frequent dealing in small amounts may also result in excessive costs.