- Knowledge Centre
Forthplus Pensions is an Edinburgh based, FCA regulated SIPP provider, with products and systems developed exclusively for fully regulated independent financial advisers.
Forthplus Pensions Limited is authorised and regulated to operate, establish and wind up pension schemes.
The Forthplus SIPP was established by Trust Deed on 2nd September 2015. Chris Holyoak has been managing director since 2014
The Trustee, as with all ‘bare trustees,’ has the sole purpose of holding the assets of the pension scheme on behalf of the beneficiaries, and acts (with regard to investments) on the instructions of the member or the member’s appointed professional adviser.
We believe that Forthplus deliver.
Forthplus SIPP is a secure, quality product that’s supported by an online system with a range of tools including calculators, guides and printable illustrations that aid advisers and clients in the advice and decision making process.
Forthplus Pensions require a lump sum of £10,000 with regular instalments, or £30,000 if it’s a one off transfer. Alternative pensions arrangements and wrappers (where appropriate) can be transferred into the SIPP.
The annual allowance for a pension contribution is currently £40,000, in order to receive the maximum tax allowance.
Pension drawdown is by two methods: capped drawdown and flexi access pension drawdown. The pension can be transferred to a nominee when you die.
Forthplus’ SIPP costs £400 to set up, and £400 ongoing - but contributions, transfers and dealing are free with relatively low charges for drawdown by either method. For example, the annual capped drawdown charge for taking regular income is £150.
There are a range of risks which you must take into account when considering whether The Forthplus SIPP is appropriate for you.
The following details some subjects, but your professional adviser will be able to go through more specific considerations based on your circumstances.
The purpose of The Forthplus SIPP is to allow its members to build up savings to provide for retirement.
Three key risk factors specific to this product which you should consider when deciding if The Forthplus SIPP is able to provide for you through retirement are:
• Funding the plan
You should also consider other factors which may be outside of your control, such as the availability of tax relief on contributions, changes in legislation and changes to the pension environment.
From the age of 55 you will be able to take benefits from your pension.
These can be taken as income, lump sums or by the purchasing of an annuity.
Under the current income and lump sum rules for the SIPP, these can come in the form of a tax free element and a taxed element.
There is not a limit on the amount of pension you can take out, although if you started taking your pension before April 2015 you may be in capped drawdown, which is limited.
You can switch to flexible benefits (limitless) at any point, although this will mean the introduction of an annual allowance on contributions across all pensions.
Taking income payments early on in retirement or taking large amounts will reduce the value of the pension and potentially its ability to provide an income into the later years of retirement.
Additionally, if you start taking income earlier than planned, then this may have an impact on the pension fund’s ability to support you, its longevity and its ongoing growth.
Your pension holdings may be subjected to additional tax levies if the total value of all your UK pension holdings are greater than the Lifetime Allowance – a limit which the government have put in place in respect of the preferential tax advantages for pension savings.
The limits are £1.25 million in the 2014/15 tax year, and this is reducing to £1 million in April 2016.
In certain circumstances individuals may be eligible for, or may have been provided with, protection in respect of these limits for pension savings they have already built up which near or cross the limits.
Sometimes these protections however are conditional, such as a requirement to no longer contribute to the plan, which may affect the original plans regarding your pension savings.
If you decide to use the pension fund to purchase an annuity, which is where you transfer your pension fund in return for a lifetime income, often guaranteed for a period of time to provide for beneficiaries, relative to your choice.
You can choose to take your tax free element and then transfer the remainder to the annuity provider to purchase the annuity, or forfeit the lump sum in favour of a higher income.
There is no guarantee that annuity rates will improve in the future.
If you elect to take an annuity, it may provide you with more or less income than you may be able to get through remaining in the SIPP.
In taking an annuity, you will give up the benefits in the event of death from your pension, such as the ability to pass on the pension as a lump sum to your beneficiaries, in favour of whatever terms are offered by the annuity provider.
It is usual that the provision of more protections, benefits and guarantees will be provided in return for a lower initial income, therefore, an annuity with a fixed income amount for life, and with no benefits for any dependants will have a higher rate of income compared to an annuity which is fixed to inflation rates and provides guarantees for your dependants should you die within 5 years.
You should consider all of these factors.
The Forthplus SIPP is not a stakeholder pension.
A stakeholder pension is a relatively simple pension solution with a limited range of investments and a range of governmentally prescribed minimum standards including charges, minimum payment levels and terms and conditions.
With a SIPP you are able to pass on any residual pension value as a lump sum or as pension income to your dependants.
On your application form you will be able to nominate who you wish to receive your pension and the percentage you wish to allocate to that individual. The Trustee will then take this nomination into account when arranging for the dispersal of pension benefits.
Your nominated beneficiaries will be notified that you have pension benefits to be passed on. They will be given the options available to them so that they can confirm how they wish to take on the benefits. The options currently available to them are to take the amount as a lump sum, paid straight to their bank account, or to have the amount paid as an income.
If the Member is under the age of 75 when they die, the whole value of the pension can be passed on tax free, as long as it is paid as either a lump sum, or is paid through Flexi Access Pension Drawdown.
If the Member is over the age of 75 when they die payments to the chosen beneficiary will be subject to income tax at the beneficiary’s marginal rate.
There are no restrictions on the level of withdrawals that can be taken.
I was very happy with the Forthplus SIPP, but have just finished transferring it as I've moved abroad.
Used another of the companies on here that you review - IPTS - they did the complicated stuff and said the transfer was right for me.
Really smooth transition, Forthplus didn't hold it up or make it awkward as I half expected them to.
So, I'll say 5 out of 5.