Take control of your retirement

What is a SIPP?

A Self-Invested Personal Pension is a type of pension that puts you in control. Unlike a workplace pension, where your employer chooses the provider and typically limits you to a small selection of funds, a SIPP lets you decide exactly where your pension money is invested.

You can choose from thousands of stocks, ETFs, and funds — giving you far more flexibility to build a retirement portfolio that matches your goals and risk appetite.

How tax relief works

Tax relief is the government's way of encouraging you to save for retirement. For every contribution you make to your SIPP, the government effectively adds money on top:

• Basic-rate taxpayers get 20% tax relief automatically. Contribute £80, and the government tops it up to £100.
• Higher-rate taxpayers (40%) can claim an additional 20% relief through their self-assessment tax return. That £100 in your SIPP could effectively cost you just £60.
• Additional-rate taxpayers (45%) can claim even more back — the same £100 contribution could effectively cost just £55.

This is one of the most powerful incentives available to UK investors. It's free money from the government to help you build your retirement pot.

What you need to know about access

A SIPP is designed for retirement, so there are restrictions on when you can access your money. Currently, you can start withdrawing from age 55, though this is rising to 57 in 2028. The first 25% of your pot can be taken tax-free, and the rest is taxed as income when you withdraw it.

These rules make the SIPP a poor choice for money you might need before retirement. But for long-term retirement savings, the combination of tax relief on the way in and tax-free growth inside the wrapper makes it exceptionally powerful.

SIPP vs workplace pension

If your employer offers a workplace pension with matching contributions, it almost always makes sense to contribute at least enough to get the full employer match — that's free money you shouldn't leave on the table. You can then use a SIPP alongside your workplace pension to gain more control over your investments, consolidate old pensions, or save additional money for retirement beyond what your workplace scheme allows.