Self-Invested Personal Pension (SIPP)
A personal pension that gives you control over how your retirement savings are invested.
A Self-Invested Personal Pension, or SIPP, is a type of defined contribution pension that gives you a wider choice of investments compared to a standard personal pension or workplace scheme. With a SIPP, you can typically invest in individual shares, funds, investment trusts, bonds, and sometimes commercial property. You still receive the same tax relief as any other pension — the government tops up your contributions at your marginal tax rate.
SIPPs are popular with people who want hands-on control of their retirement investments or who want access to a broader range of assets. Many providers offer both full SIPPs with the widest investment choice and simpler, lower-cost SIPPs that focus on funds and ready-made portfolios. Charges vary significantly between providers, so it is worth comparing platform fees, dealing charges, and fund costs before choosing one.
A SIPP follows the same rules as other personal pensions. You can contribute up to your annual allowance each tax year and receive tax relief on those contributions. You can access your SIPP from age 55 (rising to 57 from April 2028) and choose to take your benefits via drawdown, an annuity, or a combination of both. SIPPs are not right for everyone — if you are happy with the investment options in your workplace scheme, especially one with employer contributions, that may be the better place for your money.