Benefits of a SIPP

Just like other personal pensions, SIPPs are a tax-efficient way to save for your retirement.

SIPPs vs. other personal pensions – the main differences


SIPPs Other personal pensions
Tax-efficient

Can be used alongside a company pension

Widest investment choice

Transfer other investments, including shares

Take your pension benefits in stages

A wider investment choice

A SIPP gives you more choice than a regular personal pension. Investment choices include:

Taking your pension benefits

A SIPP offers you a variety of options at retirement with increased flexibilities allowing you to decide the amount you can withdraw as lump sums or regular withdrawals; whilst the remainder of your funds remains invested. An alternative option is an Annuity which still gives you an income at retirement, but it can be restrictive.

These pension flexibilities can be particularly useful if you're thinking about working part time for a while instead of giving up work completely. It also means you're not tied in to annuity rates which could be low at the time when you retire.

How can SIPPs help me achieve my retirement goals?

Invest up to £40,000 a year, tax-free

During the tax year 2015/16, you can invest up to 100% of your UK earnings in a SIPP or £40,000 – whichever is greater. You'll get tax relief on all your contributions during that year.

Is a SIPP right for you?

If you're not sure that a SIPP is the right investment for you, speak to a financial adviser.

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