In recent years, the UK has undergone a number of changes to rules and regulations on pensions and how they can be taxed, or not as the case may be. One of the major advantages to grow from these newer tax laws is regarding how investors can now take more control over where they want their savings invested and how any capital gains can be sheltered from high taxes. For anyone not yet nearing retirement age, this is a perfect way to double and even triple a pension fund over as little as a couple decades. Share dealing is one advantage of a SIPP that is hard to beat, given time to grow your fund, that is.

PPPs Offer Little to No Control in ANY Economy

In a Personal Pension, the stakeholder has little say as to where those funds are being invested. There is a fund manager who is in charge of investing in just about anything allowable by law. The amount of money, therefore, that your pension gains or loses is dependent upon the judgement of the fund manager. You have no control, except in certain cases where you can choose between one investment and another, as long as the fund manager has it in the fund portfolio and there are specific government regulations which must be adhered to.

Why a SIPP Is Significant in the Uncertainty of the Current Economy

A SIPP (Self-Invested Personal Pension), on the other hand, allows you to choose where you want to invest your pension savings and so you can follow the economy and judge for yourself where you feel your money would be safest or would grow more in the long or short term. You are also given the freedom in a SIPP to change funds without being penalised, which isn't the case with most personal pension schemes.

If you sell out to reinvest, you are almost certainly going to be assessed a capital gains tax. Check out the tax advantages of an SIPP and you will see why these pension schemes are all over the news in this uncertain economy.

Is Share Dealing an Option in Today's SIPP?

One type of investment you might want to learn about is share dealing. Unlike trading, share dealing is meant for those not looking for rapid, immediate growth of their fund. Share dealing is the buying and selling of stocks that have the potential to make a large profit but over a very long period of time. Share trading on the other hand is typically intra-day trading that happens with such rapidity based on real-time market movement that there is simply no time for large-scale growth.

So then, in the wake of Brexit with very real concerns as to the health of the UK economy going forward, share dealing may be one of the best options over the long term. Following are a few key facts about share dealing:

  • Share dealing is a long-term investment.
  • Share dealing can withstand periodic bumps in the economy.
  • Share dealing has been known to more than double in value over the course of a couple decades.
  • Is managed by you so that you must keep up with market movement.*
  • Is not subject to capital gains tax if you invest under the ceiling regulated

*In some cases you can buy into a special kind of SIPP that does have a fund manager so make sure to check out if any of these are what you are looking to join. If you don't have time or the knowledge to anticipate market movement, this kind of SIPP may be perfect for you and there is no penalty for transitioning if this is what you want.

In the End...

No one knows just how Brexit and the economy of the United States are going to impact trade, taxes and tariffs going forward, but it is certain that there will be some implications. Of this, you can be sure. If you, like millions of others, are seeking a safe but long term pension scheme, a SIPP that allows for share dealing may just be a way to significantly grow your wealth for the future.