Self-Invested Personal Pension (SIPP) Explained

A Self-Invested Personal Pension (SIPP) gives investors more control over their retirement savings, and they are an increasingly popular choice for more experienced investors who are disillusioned with their standard personal pension schemes. 


What is a SIPP?

A Self-Invested Personal Pension (SIPP) is, basically, a do-it-yourself pension. You choose what investments you put your savings into, and can easily manage them on an online platform, giving you more control over your retirement savings. 

Who are SIPPs for?

If you’re an experienced investor disillusioned with your standard personal pension, a SIPP could be worth your time and consideration. 

SIPPs are typically aimed at those who want to take more control over their investments and retirement planning. The ability to hold a wider range of assets in a SIPP, such as commercial property, is a key attraction for many investors.

To open a SIPP, you must be under the age of 75, and you can’t access your SIPP until you are 55. You can open a SIPP for yourself, or for someone else. 

What are the benefits of a SIPP?

When you open a SIPP, you can look forward to two main tax benefits. First, your investments will grow free from capital gains and income tax. Second - and most importantly - when paying into your SIPP, you receive government tax relief.

What can a SIPP invest in?

A SIPP allows you to include a much broader range of investments than standard pension arrangements. Assets held in a SIPP may include stocks and shares, listed investment trusts, gilts and bonds, exchange traded funds, commercial land and commercial property.