Pension planning has come on in very fast in recent years, not least because of the development of self invested personal pensions (Sipp). Savers are now able to choose from a wider range of assets, where once they were limited to a choice.

Nine out of ten SIPP investors believe they can outperform a professional pension fund manager. Over half want to take control of investment decisions. Nearly a fifth (17%) says the tax relief is too good an opportunity to pass up.

Before to April 2006, a tax resident of the United Kingdom, under 76 years of age can contribute up to £3,600 in a single tax year. After April 2006, £215,000 is the maximum contribution upon which tax relief can be claimed, or your earnings, whichever is the lower.

The National Pension Adviser has a list of financial consultants who are SIPP providers and offer professional advice on investment of your pension.

One of the major investment areas open to SIPPS is property. Essentially, SIPP schemes can own retail or commercial property that can be let to one’s own company.

Pay £8,000 into your SIPP and the Inland Revenue will automatically rebate £2,000 back to your account. And if you are a higher rate tax payer you can claim a further £2,000 back via self assessment, turning a £6,000 contribution into a £10,000 pension fund without risking a penny, a 66% return.

You can hold a wide variety of investments in your SIPP. These include a mix of cash, shares, gilts, bonds, alternative investments, including futures, options and investment funds, and commercial property.

Personal pensions are usually provided by insurance companies and they often limit your choice of investment to a number of investment funds normally managed by the insurance company. A SIPP should be viewed as a tax efficient wrapper into which you can invest almost any type of financial asset. Although a SIPP may be provided by an insurance or investment company, it can also be provided by specialist SIPP administrators.