Archived article: This article was correct at the time of publishing. Tax, investments and pension rules can change over time so the information below may not be current.

Video: Why reviewing your pensions makes sense

In this short video Sally Merritt, Associate Director, Investment Advisory explains what a SIPP is, how you could benefit by opening a SIPP account, and why you should regularly review your pensions.

In the past it was common for people to receive a pension linked directly to the salary they earned towards the end of their working career, which meant that a majority of people had a good idea of how much they would receive in retirement. But for most of us, those days are now gone.

In most cases, our retirement income will now depend upon how much we can accumulate in our pension plans and how these investments perform in the long-term. It is therefore vital to keep track of your pensions over the years – something that can be challenging if you have changed jobs and paid into a number of pension schemes throughout your working life.

Although not suitable for everyone, one way you could gain greater control of your pensions is to consolidate them in a Self-invested Personal Pension or SIPP. A SIPP account will conveniently hold all of your pension investments in one place, while also offering you the flexibility of a wide choice of investment options from a range of providers.

The value of investments can go down as well as up, and you can get back less than you originally invested. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change. SIPPs are not suitable for everyone. If you don’t want to invest across different asset classes or don’t think you will make use of the investment choices that SIPPs give you then a SIPP might not be right for you. Self-directed investors should regularly review their SIPP portfolio, or seek professional advice, to ensure that the underlying investments remain in line with their pension objectives. This video does not constitute a personal recommendation or advice to invest.