A Self-Invested Personal Pension (SIPP) can allow you to hold physical gold as part of your pension investments.
A Gold SIPP is a SIPP that allows physical gold to be held within the pension wrapper. Your SIPP may contain a single type of investment or multiple types for a diversified SIPP.
A Small Self-Administered Scheme (SSAS) may be an option if you operate a limited company or partnership. These schemes can typically have up to 11 members.
SSAS members are usually also appointed as trustees, meaning they share responsibility for managing and administering the scheme. This can include making decisions about how the pension funds are invested, with SSASs generally offering a wider range of investment options than many other pension arrangements.
Why use a pension wrapper?
Putting taxed money into a pension can provide important tax advantages:
· Your pension trustee will claim applicable tax back on contributions, with the reclaimed tax added to your investment pot.
· Investments held within the pension wrapper grow free from Capital Gains Tax.
· You can withdraw up to 25% of your pension post completely tax-free once you reach the eligible age.
Why consider physical gold?
Gold can play a different role than traditional investments such as stocks and bonds.
Diversification – Gold often moves independently to stocks and bonds and can therefore act as a diversifier within a mixed portfolio.
Preserving value – Gold has been historically stable, and its ability to preserve value has given it a reputation as a safe haven against a variety of risks.
Pension tax benefits – The tax benefits associated with a SIPP can help your money go further and potentially allow you to purchase more gold.
Physical ownership – Your gold is physically held in secure storage in the name of your pension, helping to minimise counterparty risk.
How do I set up a physical Gold SIPP?
Not all SIPP providers offer physical gold, although all SIPP pension providers can potentially offer this service.
We are happy to work with any pension trustee of your choosing, willing to provide the service through us.
Your first step should be to speak with your existing pension provider to see whether they can offer a physical Gold SIPP.
It is important to carry out your own due diligence and research all associated fees, including any costs involved in transferring from another pension provider.
We can match and introduce you to a suitable pension trustee partner.
What happens next?
Once you have found a suitable provider, the process is straightforward:
1. Open your SIPP – Open a SIPP pension account and make sure you understand all applicable charges.
2. Fund your account – Fund the SIPP with fresh contributions or transfer funds from an existing pension. Your new trustees can assist with tax reclamation and transfers from other institutions.
3. Authorise the purchase – Tell your trustee how much you would like to allocate towards purchasing physical gold.
4. Select your gold – We will work directly with you to put together a selection of bars suitable for your requirements. You will need to provide identification and next-of-kin details.
5. Purchase and secure storage – Once funds are received, we will progress your order for the gold bars and arrange secure storage with our custodian partner, Loomis International). Any surplus funds can either be returned to the trustee or retained towards future storage fees.
6. Ongoing storage – Your SIPP provider will be billed quarterly for storage fees. All payments to and from Bleyer must go though your SIPP provider.
