A Guide to Bullion & Pensions

gold bullion is often referred to as a ‘safe haven’ investment, and is renowned for being an excellent long-term investment, it is natural that many people turn to gold when it comes to building a pension portfolio. Gold is becoming increasingly popular as a pension investment, due in part to the recent financial crash and the effects it had on the pensions of many investors. As we know, gold carries no counterparty risk and is a physical asset that can be sold on at any time. This is why investing in gold bullion is still a very wise and popular choice today, allowing thousands of people to safeguard their wealth for the future.

Stack of coins

Our Advice

We advocate the purchase of a proportion of gold and silver as part of the strategic management of a more balanced pension portfolio geared towards improving the prospects of long term value. By including gold and silver bullion in your pension portfolio, you effectively safeguard your wealth against any future economic downturns. Placing gold in your pension through London Gold Bullion also benefits from: 

- purchasing at the best available market price
- freedom from capital gains and income tax
- management fees that are just a fraction of other asset classes

Pensions: Gold and Silver as an Investment Hedge

Private pension investment vehicles recognised by HMRC offer generous tax breaks on income turned into pensionable assets, which may provide investors with more retirement income. This means that investing in gold bullion could help investors to save a great deal in income tax, depending on the amount that they invest. Depending on the tax bracket, the tax break could be as high as 45% of the buying price of the gold bullion.

UK pension legislation today gives individuals much greater control in deciding how to manage their pension savings. As of 2014, obligatory annuity purchase is gone and many investors now personally invest far more of their own pension savings. Whilst investors look to achieve value maintenance and growth of their pensioned savings, protecting against any downside on pension savings is often overlooked.  Yet this has become all the more important today. Gold’s great advantage is that it has no counter party risk, holding stable value over the long term and hedging value when all other assets fall.

How to Invest

Investors can hold physical gold in either a Self-Invested Personal Pension (SIPP) or a Small Self-Administered Scheme (SSAS). If you do not have an existing provider, we can:

- manage the set up for you from start to finish
- provide you with a list of appropriate SIPP and SASS providers should you prefer to do it yourself

Under HMRC pension rules, any gold held in your SIPP or SSAS must remain securely vaulted, held in bar form and of purity not less than 995 thousandths. All of our gold bullion is investment grade and of the highest quality. For further information on how to create a pension investment portfolio, please call 0793 033 6013. 

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