While there have been numerous changes in the pensions market over the last few years, the SIPP has remained the number one pensions investment vehicle for many, but why? For those who have not come across a SIPP, it is a Self Invested Personal Pension, basically your own pension pot which you can use to invest in a wide range of authorised investments. 

The type of investment which you can bring into a SIPP include :-

1. Stocks and shares listed on a recognised investment exchange.
2. Options which are traded on a recognised investment exchange.
3. Authorised Units Trusts, OEICS and UCITS funds.
4. Unauthorised investment funds which do not invest in property.
5. Deposits accounts.
6. Commercial property.
7. Borrowings to fund part of future investments.
8. Traded endowment policies.

There are also a number of more obscure investments which are allowed, and the list can and does change on a regular basis.

The government have specifically precluded investments in social housing, as there is scope for misuse of the system, e.g. if you were to buy your own house with pension funds, what would happen if you missed the rent payments, what is a fair rent, etc.  Originally the authorities had intended to allow social housing investments, but they quickly changed their minds as weird and wonderful arrangements were being arranged to effectively abuse the system.

The main reason why SIPPs have become so popular is the fact that while administered by an authorised SIPP provider, you have the control over where and when your funds are invested (within the regulations).  This cuts out much of the extra cost associated with a paid adviser, but there is also the risk that you may actually get it wrong!