Forthplus Pensions Limited are SIPP administrators only and do not have permission to provide financial advice.
This website aims to provide information to help you make your own informed decisions. It does not provide personal advice based on your circumstances. If you are unsure of how suitable an investment or product is for you, please seek personal advice from a financial adviser.
There are many independent organisations that can provide you with information about pensions and finding a regulated financial adviser. Please refer to the following websites:
With so many different parties involved in your pension, it is always worth ensuring that you understand who does what to get the most out of your retirement planning experience.
At Forthplus Pensions, we are the Scheme Administrators of your pension scheme. This means that our responsibility is to, via the Trustees, Forthplus Trustees Limited, hold your pension funds on your behalf, which gives you the tax advantages of pension savings.
As The Forthplus SIPP, is a Self-Invested Personal Pension, and especially as we only accept members introduced by and managed by regulated financial advice firms, we do not have any involvement in:
- the investment review and recommendation process,
- the suitability of investments,
- when is appropriate to take any pension amounts,
- any tax implications on pension withdrawal or otherwise, or
- any other action in respect of your pension,
other than in the application of our policies, imposed for the protection of members from a general perspective, and the application of legislation and regulations over the pension.
Therefore, we only act on your instructions, and where you have one and you have authorised them, the instructions of your financial adviser.
Additional to us, you will have at least one financial adviser. To become a member of The Forthplus SIPP you must be introduced by an appropriately regulated financial advice firm, relative to the jurisdiction in which you are resident. In some instances, you may have more than one financial adviser, and alongside this may have other advisers, such as tax, accounting and legal advisers. This becomes especially prevalent for clients with more complex personal circumstances.
At Forthplus Pensions, we do not and will not provide any financial advice. This is by design, as our model has been developed to provide a pension solution for clients who are able to understand the complexity of holding a Self-Invested Personal Pension, and who have appointed appropriate advisers through the life of the plan (not just for inception) to cover the aspects of the relationship we will not be making provision for.
The value of investments can go down in value as well as up, so you could get back less than you invest. Past performance is not an indication of future performance. It is vitally important that you understand the risks and commitments before taking up a pension product. You should also review, with your financial adviser, whether this specific product is suitable for your circumstances. There are other types of pension arrangements available which may be more suited to your circumstances.
The Financial Services Compensation Scheme (FSCS) protects members up to the value of £85,000 if Forthplus Pensions Limited fails. If you are provided with bad investment advice from your investment adviser, relative to the jurisdiction in which your financial adviser is regulated, there may be similar consumer protection available to you.
The FSCS is funded by the financial services industry and is free to consumers. FSCS does not cover losses arising from general poor investment performance or compensate against scams. Please visit www.fscs.org.uk for more details.
Investments must be made in line with our investment policy.
Any yields will vary over time, so income is variable and not guaranteed.
Exchange rate fluctuations may have an adverse effect on the value of non-GBP investments and any income received from these.
Tax information provided is based on our understanding of current HMRC legislation. Tax allowances and rates depend on your individual circumstances and may be subject to change. If you live outside of the United Kingdom or are a citizen or tax domicile of another jurisdiction, additional tax considerations for your country of residence, your country of tax domicility, your country of citizenship and otherwise may also be applicable. This also includes the tax treatment of the Pension Commencement Lump Sum, and the risk and management requirements of double taxation. You should seek proper tax advice from an appropriate authorised and qualified individual if you require any tax advice.
Please visit gov.uk for the latest tax information from the UK.
UK pensions are managed by UK legislation and regulations and are liable to change. Furthermore, the recognition and treatment of the same in other jurisdictions is liable to change. Careful consideration of this, on an ongoing basis, is required. Advice on this cannot be provided, and again, appropriate advice should be maintained to mitigate any risk, as far as possible, surrounding this.
Most UK residents under 75 can contribute to a personal pension and benefit from tax relief. If you have made, or plan to make pension contributions, please consider the following information. You should also discuss your personal circumstances with your financial adviser.
Relevant UK earnings: Total personal and employee contributions each tax year cannot exceed total earnings from employment and self-employment for that year, or £3,600 if higher.
Annual allowance: This is the maximum amount of pension savings an individual can make each year across all pension funds to gain the benefit of tax relief. The allowance is set at £40,000 for the 2019/20 tax year.
Payments cannot be refunded on the sole grounds they are above the annual allowance and may incur a tax charge.
Retirement benefits built up in a defined benefit pension are given a value which also counts towards the annual allowance. You should ask your provider what that value is.
Tapered annual allowance: This applies to individuals with income for a tax year greater than £150,000. Those affected will have their annual allowance for that tax year restricted on a tapered basis subject to a minimum reduced annual allowance of £10,000.
Carry forward: You may be able to pay in more than the annual allowance by carrying forward unused annual allowance from previous tax years.
Money purchase annual allowance: For individuals who have flexibly accessed a defined contribution scheme, a tapered annual allowance applies to them. This is set at £4,000 for the tax year 2019/20.
Lifetime allowance – set at £1.055m in 2019/20, increasing to £1.0731m for 2020/21: This is the total you can accumulate across your pension funds. It is measured at two points: when retirement benefits are taken and at the age of 75. It includes all private and work pensions, including those from which you already take an income. There may be a significant tax charge on any excess over the allowance.
Enhanced or fixed protection: If you have applied to HMRC for enhanced or fixed protection against the lifetime allowance, further contributions may invalidate the protection.
If you are thinking about transferring your pension, please consider the information below and read our Pension Transfer Policy. This guide confirms, based on our current understanding, what is deemed as a Pension Transfer, and what is deemed as a pension switch. You need to be satisfied that The Forthplus SIPP meets your requirements.
You could enjoy many benefits when you transfer to The Forthplus SIPP, however, you could also lose valuable features of your old pension(s) and may be liable to unwanted tax consequences.
You should discuss your personal circumstances with your financial adviser.
The following factors should be considered:
- To make a defined benefit or final salary pension transfer over £30,000, you must have received advice from an FCA regulated Pension Transfer Specialist who will provide an Appropriate Pension Transfer Analysis.
- You could lose valuable guarantees on annuity rates, growth, bonuses, minimum retirement incomes, discretionary bonus rates or a potential demutualisation bonus, for example.
- Your pension will be transferred as cash, unless otherwise arranged. While your pension is in cash you will not make investment losses or gains. This may not work in your favour.
- You could lose benefits such as life insurance or waiver of premium insurance.
- Employer contributions or other benefits if transferring an occupational pension.
- A tax-free cash rate higher than the usual 25%, if transferring some occupational pensions, or pensions that have received a transfer from them. • The ability to retire before age 55.
- Enhanced or fixed protection against the lifetime allowance.
- Gender-specific annuity rates within some occupational pensions, which could benefit males. You should give extra consideration to these factors if approaching retirement as you may have less time to make up for any loss of benefits or protections.