People taking a look at their pensions options could contemplate organising a SIPP (self-invested private pension) because the bespoke pensions wrapper has a number of advantages.

Caitlin Southall, pension technical supervisor at Curtis Banks, informed Express.co.uk: “An SIPP offers a great opportunity for consolidating multiple pensions into one place.

“Due to the breadth of investment opportunities available with a SIPP, individuals can use their consolidated pension to change investment strategies as needed as they go through the ‘building’ stage of their pension through to retirement and beyond, without needing to change product.”

She stated a key benefit of the scheme is the pliability it provides with how the funding works.

An individual can select to put money into a spread of listed and unlisted shares and shares, in addition to unit trusts, money, open-ended funding corporations, gold bullion and industrial property.

Explaining how they work, Ms Southall stated: “Once the SIPP is set up, it is a pension tax wrapper that you put your chosen investments inside, like an ISA.

“There are a number of different types of investments you can choose from as a SIPP is more flexible than a normal pension.”

“These can include listed and unlisted stocks and shares, gold bullion or commercial property.

“There are differences between providers, some accept applications directly from customers; others may need a financial adviser to apply on your behalf.”

However, SIPPs will not be appropriate for all pension savers. Daniel Bowen, senior wealth planner at Tees, informed Express.co.uk: “SIPPs are not for everyone.

“They are more popular with DIY investors who are looking to wider investment options, and advisors looking to more sophisticated investment strategies for their clients.”

Mr Bowen stated enterprise homeowners typically use SIPPs to carry their industrial enterprise premises.

He added: “If you are unsure as to the right investment for you, then you can seek advice from an independent financial advisor.”

Mr Southall stated: “The self-employed are less likely to save into a pension. However, there are lots of benefits in having a SIPP when it comes to business owners.

“Employers can made contributions directly into a SIPP, which has the benefit of reducing corporation tax (as contributions would be made from trading profits) and the pension fund grows ready for investment or retirement.”

In organising a SIPP, the person may also organize after they would look to attract down from the pension as soon as they attain the pension age, which is presently 55.

Ms Southall defined: “When it comes to accessing the pension, there are various options available with SIPPs.

“You are able to take 25 percent of the SIPP fund tax free once you reach 55, subject to certain conditions.

“Taking tax free cash would have an impact on the remainder of the pension, so an important decision to get right.

“As with other pensions, for any contributions you make the government pays in tax relief at 20 percent. If you pay a higher rate of tax, you can usually claim additional relief through your tax return.”

SIPPs like different pension funds are additionally usually not thought-about a part of an individual’s property for inheritance tax functions, so generally is a great way for an individual to go on wealth to their household.

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