What is a SIPP?
SIPP rules, benefits and pension tax relief explained
SIPPs (Self-invested Personal Pensions) are a type of pension that give you more control over your retirement savings. You can choose exactly how to invest your pension, easily consolidate several pensions in one place and review your investments at any time.
Reasons to choose a SIPP
- Have your pension savings managed by an expert, invest with an adviser or choose from thousands of investments and manage them yourself.
- Buy, switch and review your investments easily. Choose exactly how to take an income from your pension when you retire.
- You could pay less money in fees over the long term if you choose a low-cost SIPP from the right provider.
- Get more control and a clear view of your overall retirement savings by consolidating all your pensions with one provider*.
Who can have a SIPP?
SIPPs can be opened by almost any UK resident under the age of 75. You can open a SIPP for yourself or someone else – like a child or partner. But before opening an account you should make sure you will use the extra control and choice that SIPPs give you.
Pension tax benefits
Investments in SIPPs and other pensions are tax-free. You also get tax relief on all your contributions up to your pension annual allowance. The Government automatically adds 20% to anything you pay in, and higher and additional-rate taxpayers can claim back another 20% or 25% too.See how much you can contribute
Investments in SIPPs and other pensions are tax-free
How to open a SIPP
You can open our award-winning Best SIPP by investing a lump sum, setting up regular savings or consolidating other pensions*. You can open your account online in five minutes or print the application forms and send us them through the post. And if you need some help our experts are always on hand to take your call.
SIPPs are not suitable for everyone. If you don’t want to invest across different asset classes or don’t think you will make use of the investment choices that SIPPs give you then a SIPP might not be right for you. Please contact us for guidance or advice if you are unsure whether a SIPP is right for you.
*Before you consider transferring a pension, it is important to ask yourself: Will I lose any valuable benefits or features from my existing pension plan? Will I incur any penalties on my existing pension if I transfer? Is it an occupational final salary pension scheme? (in which case it is very unlikely to be advisable to transfer) Have I considered the charges on my current plan? (a new arrangement may be more expensive – especially if you have a stakeholder pension).