If you are willing to take more control of your pension, there are good reasons to check out whether taking a SIPP would be the right choice.

SIPPs are self-invested personal pension plans that offer more options for investment than standard pensions and they have some tax benefits.

The conventional route to retirement saving is to take out a personal pension or join salary-linked or money purchase workplace pension schemes. All three tend to place investment decisions in someone else’s hands, usually trustees or insurance companies.

SIPPs allow much more freedom in what you can invest in and these investments are held directly by you. But if preferred, your investment strategy can be managed by a fund manager or stockbroker. All types of assets can be held in a SIPP but some are liable to tax charges. Those not liable include: equities listed on a recognised exchange, unlisted shares, commercial property and gold bullion.

One of the benefits of a SIPP is that if you have savings in a number of pension schemes, usually because you have moved jobs, it is possible to consolidate all of those pension pots into one pension ‘wrapper’. It is also permitted to have a SIPP plus a traditional pension scheme. SIPPs have the same tax advantages as other personal pension plans and may be a suitable option if you are self-employed. One of the unusual things about a SIPP is that you can invest in your own business by using it to buy commercial premises.

If you are considering a SIPP you should be aware that charges will be higher and there are some risks to consider. The value of the SIPP when you are ready to draw benefits cannot be guaranteed because investment returns fluctuate and you could realise less than you have contributed. If invested in property, land or business there may be a delay in realising the assets.

The value may also be less than expected if you stop or reduce contributions or take your benefits earlier than planned. It is also worth noting that the cost of frequently changing funds may outweigh the benefits.

Your contributions to any pension attract tax relief. Basic rate tax of 20% is automatically added by the state to your pension pot and if you are a higher rate tax payer you can claim back up to a further 20%. Budget changes to the rules over the past few years have imposed some limits on tax relief so it is worth checking your position with HMRC; tax and pension calculators can help you to decide how the tax rules apply to your circumstances and how much retirement income you may get from your retirement savings.