Self-Invested Personal Pension (SIPP)

A SIPP is a pension you control. Instead of being tied to whatever your employer or a standard provider offers, you choose where your money is invested — and you still get the same generous tax relief. For the self-employed, higher earners, or anyone who wants more say over their retirement, a SIPP is one of the most powerful financial tools available. We connect you with specialist, FCA-regulated pension advisers who can help you get it right. The introduction is free.

FCA Regulated| FCA No. 1038034| Free Pension Adviser Introductions| Est. August 2019| Verify on FCA Register

SIPP in plain English — the numbers that matter

£60,000annual pension allowance (2025/26) — the most you can contribute and still get tax relief
20–45%tax relief on contributions — the government tops up every pound you put in
57earliest age you can access your SIPP (rising to 57 in 2028 — currently 55)
25%of your pension pot you can take tax-free as a lump sum when you retire
📌 The tax relief that makes pensions so powerful — explained simply If you are a basic rate taxpayer and you put £800 into your SIPP, the government adds £200 in tax relief — so £1,000 goes into your pension. If you are a higher rate taxpayer, you can claim an additional £200 back through your tax return, meaning that £1,000 in your pension effectively cost you just £600. That is a 67% instant return before your investments have grown a penny.

A SIPP works like any other pension in terms of tax relief and the rules around access — the difference is the investment choice. Standard workplace pensions typically offer a limited range of funds. A SIPP opens up the full investment market: thousands of funds, shares, investment trusts, ETFs, and more. That flexibility is powerful — but it also means the decisions matter more, which is why taking advice is so important.

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Got Old Pensions Scattered Around? We Can Help.

Many people open a SIPP to consolidate old workplace pensions into one place — making them easier to manage and potentially reducing charges. We can introduce you to a specialist who will check each pension for valuable guarantees before recommending any transfer.

Find out about combining your pensions

Who is a SIPP best suited to?

The self-employed

No employer pension? A SIPP is the most flexible and tax-efficient way to build your own retirement pot — contribute what you can, when you can, and get full tax relief.

Higher and additional rate taxpayers

The higher your tax rate, the more valuable pension contributions become. A SIPP lets you claim full higher rate relief — something not all workplace pensions do automatically.

People with old workplace pensions

Consolidating scattered pensions into a SIPP can simplify your retirement planning, reduce charges, and give you a clearer picture of what you have. An adviser will check for guarantees first.

Investors who want more choice

If you want to invest in specific funds, shares, or asset classes that your workplace pension does not offer, a SIPP gives you the freedom to do so.

People approaching retirement

A SIPP gives you flexible access options — drawdown, annuity, or a combination — so you can structure your retirement income in the most tax-efficient way.

Parents planning ahead

Pensions are one of the most tax-efficient ways to pass wealth to the next generation. A SIPP can form part of a wider family financial plan alongside ISAs and Junior SIPPs.

How tax relief works — a real-world example

👥 Meet Sarah — a self-employed graphic designer, higher rate taxpayer

Sarah earns £60,000 a year and wants to put £10,000 into her SIPP this tax year.

She pays £8,000 into her SIPP. Her provider automatically claims basic rate tax relief of £2,000 from HMRC — so £10,000 goes into her pension.

Because Sarah is a higher rate taxpayer, she can claim an additional £2,000 back through her self-assessment tax return. So her £10,000 pension contribution effectively cost her just £6,000.

That is a 67% instant return — before her investments have grown at all.

👥 Meet James — an employee, basic rate taxpayer

James earns £35,000 and wants to contribute an extra £200 per month to his retirement on top of his workplace pension.

He pays £160 per month into his SIPP. His provider claims £40 in basic rate tax relief automatically — so £200 per month goes in.

Over 20 years, assuming 6% annual growth, that £160 per month could grow to over £90,000 — a pot that cost him £38,400 in actual contributions.

SIPP vs workplace pension — what is the difference?

Investment choiceA workplace pension typically offers 10–20 funds. A SIPP opens up thousands of options — funds, shares, ETFs, investment trusts, and more.
Employer contributionsYour employer can only contribute to your workplace pension, not your SIPP. If you have an employer pension, keep it — a SIPP works alongside it, not instead of it.
Tax reliefBoth get the same tax relief. But higher rate taxpayers often need to claim the extra relief themselves — a SIPP makes this straightforward.
Flexibility at retirementSIPPs typically offer more flexible drawdown options than standard workplace pensions — useful for managing your retirement income tax-efficiently.
ChargesSome SIPPs have higher charges than workplace pensions. An adviser will compare the total cost against the benefits before making any recommendation.
ConsolidationA SIPP is a natural home for old workplace pensions from previous jobs — bringing everything together in one place you control. Find out more about combining pensions.

How to get connected to a SIPP adviser

1

Get in touch

Tell us you are interested in a SIPP and a little about your situation — whether you are self-employed, have old pensions to consolidate, or want more investment choice. No forms, no pressure.

2

We make the introduction

We introduce you to a specialist pension adviser we know and trust. The introduction is warm — they will know your situation before they call.

3

The adviser reviews your full picture

They will look at your existing pensions, your tax position, your goals, and your attitude to risk before making any recommendation.

4

You decide — in your own time

There is no pressure to proceed. The adviser will explain everything clearly and let you make the right decision for your retirement.

Get Your Free SIPP Adviser Introduction

SIPP questions answered in plain English

What does SIPP stand for and what does it actually mean?
SIPP stands for Self-Invested Personal Pension. The ‘self-invested’ part just means you have more control over where your money is invested — you are not limited to the funds your employer or a standard provider chooses for you. Everything else — the tax relief, the rules around access, the 25% tax-free lump sum — works the same as any other pension.
Can I have a SIPP if I already have a workplace pension?
Absolutely. A SIPP works alongside your workplace pension — not instead of it. Keep your workplace pension, especially if your employer contributes to it (that is free money you should not walk away from). A SIPP is a separate pot you control, where you can make additional contributions and potentially consolidate old pensions from previous jobs.
When can I access my SIPP?
Currently you can access your SIPP from age 55. This is rising to 57 in April 2028. You can take 25% of your pot as a tax-free lump sum. The rest is taxed as income when you draw it — so how and when you take it matters a great deal for your tax bill. An adviser will help you plan the most tax-efficient way to access your pension.
What happens to my SIPP when I die?
This is one of the most important — and least understood — features of a pension. If you die before age 75, your SIPP can usually be passed to your beneficiaries completely free of income tax. If you die after 75, it is taxed as their income when they draw it. Crucially, pensions currently sit outside your estate for inheritance tax purposes — though this is changing from April 2027, when unspent pension pots will be included in your estate. An adviser will help you plan around this.
Can I transfer old workplace pensions into a SIPP?
Yes — and for many people this is one of the main reasons to open a SIPP. Consolidating old pensions into one place makes them easier to manage and can reduce charges. But it is not always the right move — some older pensions have valuable guarantees (like guaranteed annuity rates) that would be lost on transfer. An adviser will check each pension carefully before recommending any transfer. Find out more about combining your pensions.
Is the introduction really free?
Yes — we make the introduction at no cost to you. The pension adviser may charge a fee for their advice; they will make their charging structure clear before providing any advice or recommendation.

Explore our investment hub

Investments HubBack to the main investments page — explore all your options in one place. Combine My PensionsGot old workplace pensions? Find out how consolidation works and whether it is right for you. Junior SIPPStart a pension for your child from birth — with tax relief and decades of compound growth. Stocks & Shares ISATax-free investing alongside your pension — with flexible access whenever you need it.
Written by Ben Tomlin — Financial Adviser, That’s Family Finance (a trading style of RB Ame Ltd).
Qualifications: Level 4 Diploma in Financial Advice · Level 3 Certificate in Mortgages & Protection · Level 3 Certificate in Equity Release.
FCA Individual Reference Number: BXT01420 · Last reviewed: August 2026.
Important information: That’s Family Finance is a trading style of RB Ame Ltd, authorised and regulated by the Financial Conduct Authority (FCA No. 1038034). Our FCA permissions cover protection insurance only. We do not provide pension or investment advice. Where we introduce clients to pension advisers, those introductions are to separately FCA-authorised firms who provide advice in their own right. The value of pension investments can go down as well as up. You may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change. Pension and tax rules are based on current legislation for the 2025/26 tax year. The minimum pension access age is currently 55, rising to 57 in April 2028. This page is for information only and does not constitute financial advice.