What is a SIPP, International SIPP and Expat SIPP?

What is a SIPP?

A SIPP (or Self Invested Personal Pension) is a type of UK registered personal pension that, as opposed to a conventional UK personal pension, can offer greater flexibility and individual control. In many ways, it is similar to an Individual Retirement Account (IRA) in the US.

SIPPs have typically always been more flexible than other types of UK pensions, particularly older employer or insurance company pension schemes. Since the UK pension flexibilities were introduced in April 2015, SIPPs have offered even greater retirement and wealth planning opportunities.

What is an “International SIPP” or “Expat SIPP”? Are they different to a SIPP?

An International SIPP, an Expat SIPP and a SIPP are all regulated in the UK in the same way. As a result, it could be argued that the terms are used largely for marketing purposes.

However, it is true that not all SIPPs are created equally. For example, some SIPP providers will not accept non-UK resident clients or offer other benefits like being able to invest and draw from a SIPP in multi-currency.

If a SIPP is not called an International or Expat SIPP, do not assume it will not meet your needs as a non-UK resident.

In fact, if an advisory firm recommends that you invest in an International SIPP, we recommend that you confirm the structure and charges in full. As cautioned by the UK’s FCA in 2020, some overseas advisory firms have recommended that people invest their pension funds through an offshore investment bond within an International SIPP. This could expose you to high and/or unnecessary charges. The tax benefits of investing through an offshore bond are, as the FCA notes, “largely redundant to someone investing in a UK personal pension scheme”.

At Florin Pensions, we have never recommended offshore bonds to our clients. We work with a panel of UK pension providers so that we can select with clients the pension provider that best meets their needs.