Important information - A SIPP is a type of pension for people happy to make their own investment decisions. Investments go down in value as well as up so you could get back less than you invest. The rules mentioned are those currently applying and could change in the future. You can normally only access the money from age 55 (57 from 2028). Tax reliefs depend on your circumstances. This website is not personal advice, if you are unsure an investment is right for you, please seek advice.
The table below illustrates the power of regular savings. A regular monthly contribution can add up to a sizable pension pot over the years.
|Net amount you pay||Gross monthly contribution||What it could be worth in 20 years*|
*Assumes 5% annual growth and 1% annual charge. The actual growth and charge could be more or less than this and will depend on the investments you choose. Inflation will reduce the spending power of money over time. Gross monthly contribution includes basic-rate tax relief.
Regular savings can be an effortless way to save. Saving a proportion of your monthly income could help you build a big retirement fund over time. It spreads the cost of your contributions over the year and your money is collected automatically. You can normally start, stop, increase and decrease your contributions whenever you like. Once your funds are held in a pension they are not usually accessible until age 55 (57 from 2028).
All investments can go down in value as well as up so when is the best time to invest a lump sum? With regular savings you don't have to make this decision as you drip feed money into the market. This gives you an average price of the market and when it dips, allows you to buy more units at a cheaper price. Please note, as investments can fall in value you could get back less than you invest. They should be held for the long term.
Any UK resident under 75 can contribute to a SIPP and receive tax relief. As a general rule, you can contribute as much as you earn to pensions, subject to the £40,000 annual allowance (as little as £10,000 for some high earners and £4,000 for some people who have already accessed a pension). The exact amount and tax reliefs available will depend on your individual circumstances.
If you earn below £3,600 per annum you can contribute £300 a month. Because of the added tax relief only £240 would be deducted from your bank account.
Please note, you must take all your pension contributions in this tax year into account when calculating how much you can contribute each month.
We collect the money from your bank account on the 7th of the month and place your investment on the 10th of the month. If either of these days is not a working day the transaction will happen on the next working day.
Your basic-rate tax relief will be received 10-11 weeks later and invested in the same funds as the contribution. Any higher or additional-rate tax relief due would be claimed by you directly through your local tax office. If you invest in shares, it will be held as cash.
With the Vantage SIPP you make all your own investment choices without advice. You can choose from more than 2,500 funds and FTSE 350 shares. If you're not sure where to invest, our Wealth 150, which comprises our favourite funds in each sector, could be a great place to start.
There are no dealing charges for funds and a low dealing charge of £1.50 a month for shares.