self-invested personal pension

Definitions

Economics

  • noun a form of personal pension plan where the individual member is able to direct the investment of the money he or she pays into the plan. Currently an individual can invest up to 17.5 per cent of earnings up to the age of 35 and up to 40 per cent of earnings if he or she is in the 61–74 age bracket. There is a maximum per annum contribution and the accumulated investments must be used to purchase an annuity before the member reaches the age of 75.
  • acronymSIPP
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