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Self Invested Personal Pension Home

What is a SIPP?

A SIPP stands for Self-Invested Personal Pension. SIPPs were introduced to encourage people to save for retirement, by giving them control over their funds.

There are three types of pensions most of us will be familiar with:

  • State pension
  • Employer pension
  • Private pension

A SIPP is a type of private pension and importantly, shares the same generous tax benefits of other private pensions. 

Is a SIPP right for you?

SIPPs are a good fit for people who understand and have an interest in investing

Managing your own portfolio can be hugely rewarding both in terms of personal satisfaction as well as performance, but as with any investment, it is not without risk and the value of your investments can fall as well as rise.

Accessing your funds is another consideration. Pensions are designed for retirement, which means that you won’t be able to access your money until you are 55 (or 57 from 2028).

And as, everyone’s circumstances are unique, and tax implications apply to withdrawals, you should take the opportunity to seek advice as you review your long-term needs.

Pension rules are subject to change and the government offers a free and impartial pension guidance service called Pension Wise, there to help you understand your retirement options. Visit www.pensionwise.gov.uk or call 0800 138 3944.

Overall, SIPPs put you in the driving seat. If you are comfortable with the idea of actively managing your investment, taking responsibility for decisions you make, and building for the long-term, a SIPP might work for you.

Whatever your employment circumstances, a SIPP can work for you

A SIPP is portable (i.e. it’s attached to you, not your job) so if you are employed and you change jobs, you can continue to make contributions and, depending on the terms of your employment, your employer can too.

If you are self-employed, a SIPP is a practical way to contribute to your personal pension and offers you a far greater choice of where to invest.

In addition if you are a business owner, any contributions your company pays in to your SIPP are deducted before profit and therefore would not be subject to corporation tax. What’s more, as the money isn’t being paid to you as a dividend or as salary, you would not pay any tax until the time comes to take the money (by which time you will probably be retired so are likely to pay a lower rate of tax).

Even if you stop working, you can continue to make contributions into your SIPP.

Three reasons to open a SIPP

  1. Tax benefits

  2. Personal control over your investments

  3. Wide range of investment opportunities

Read our SIPP Guide to find out more

Why choose Selftrade for your SIPP?

Selftrade is unique among the leading DIY investment platforms in the UK as it enables investors to choose a SIPP from an external provider and then manage it on our platform. Or you can choose a Selftrade SIPP, provided by our partner, Gaudi.

Choosing your SIPP provider gives you full flexibility over your SIPP options and enables you to choose the provider best suited to your circumstances and retirement goals.

Find out more about SIPP providers

The low fee factor

The cost of a SIPP will vary depending on the value of your investments, the number of trades you make, and the SIPP provider you choose. 

The Selftrade SIPP is a complete service that includes administration and trustee services provided by Gaudi Regulated Services Ltd. The annual administration fee is a low £118.80. Annual administration fees with a provider typically start at around £200 per year.

Whichever SIPP provider you choose, with Selftrade the more you trade, the smaller the fee. Over half of our existing SIPP customers do not pay any custody fees as they are offset by their dealing commissions and funds platform fees, saving £70 per annum.

That means lower costs each year as you build towards your retirement.

See our fees page

Your choice. Your know-how.

For more information on SIPPs, visit our SIPP Hub - a digital resource of investment tools, tips and FAQs.


Visit the SIPP Hub

Four reasons why investing with a SIPP can help your retirement financial planning

  • Be in control of your retirement pot

    A SIPP gives you the flexibility and control to choose how your money is invested across a range of asset classes and sectors.

    You can sign in at any time to invest or monitor performance.

     

  • Benefit from up to 45% tax relief

    The government will add 20% tax relief to contributions you make to your SIPP. Furthermore, higher and top-rate tax payers can claim up to an extra 25% back on their tax return.

     

     

  • A great way to boost your retirement income

    SIPPs allow you to invest and gain tax relief on contributions up to £40,000 per annum. Thanks to the carry forward rules, any unused allowance can be rolled over for up to three years, meaning you could invest up to £120,000.

     

  • Take advantage of tax breaks

    Any capital gains made within a SIPP are tax free, and you can withdraw a 25% lump sum tax-free from the age of 55. That’s more money for you to spend in retirement.

     

     

  • Be in control of your retirement pot

    A SIPP gives you the flexibility and control to choose how your money is invested across a range of asset classes and sectors.

    You can sign in at any time to invest or monitor performance.

     

    SIPPs explained
  • Benefit from up to 45% tax relief

    The government will add 20% tax relief to contributions you make to your SIPP. Furthermore, higher and top-rate tax payers can claim up to an extra 25% back on their tax return.

     

     

    How tax relief works
  • A great way to boost your retirement income

    SIPPs allow you to invest and gain tax relief on contributions up to £40,000 per annum. Thanks to the carry forward rules, any unused allowance can be rolled over for up to three years, meaning you could invest up to £120,000.

     

    Taking your pension
  • Take advantage of tax breaks

    Any capital gains made within a SIPP are tax free, and you can withdraw a 25% lump sum tax-free from the age of 55. That’s more money for you to spend in retirement.

     

     

    Types of pensions

We’re on hand to help at our Customer Experience Centre on 0345 0700 720