Which would you prefer: made-to-measure or one-size fits all? Almost invariably, the outfit made to your exact dimensions and specifications by a master tailor is going to look better and last longer than the mass-produced alternative – albeit at much greater cost. The same is often true when it comes to pensions. The package that's been designed specifically for you and under your supervision may well leave you better off than the default option.
Self-invested personal pensions (Sipps) are the hottest number on the pensions catwalk today. Previously, they were out of reach to many people. However, just as Versace ranges are nowadays sold on the high street, Sipps are now being promoted to Joe Public as well as to Fred Fat-Cat. They're being marketed as an affordable and effective way to build the largest possible amount of wealth for your retirement.
A Sipp allows you to get directly involved in the design and construction of your pension. You can build a portfolio of assets that reflects your particular goals, circumstances and appetite for risk. And because you have the freedom to invest in a broader range of investments through a Sipp than through a company, personal or stakeholder pension (SP), you could end up with a fatter pension pot.