Like all pensions, a SIPP offers up to 45% tax relief on contributions and there is no UK capital gains tax or further UK income tax to pay. The tax benefits will depend on your individual circumstances and tax rules are subject to change by the government.
However, whereas traditional pensions typically limit investment choice to a shorter list of funds, normally run by the pension company's own fund managers, a SIPP lets you invest almost anywhere you like and choose your own investments.
What's more, you can manage your SIPP completely online, enabling you to buy and sell investments at the click of a mouse.
From the pros and cons, to how the tax rules work and getting started, find out all you need to know about SIPPs with our FREE easy-to-read guide.
The Hargreaves Lansdown Vantage SIPP has no set-up fees. Low costs mean more of your money working for you, whether you're transferring an existing pension or investing new money.
You can deal shares online from just £5.95 to £11.95 a deal plus benefit from exclusive super-low annual charges on several top funds - the discounts we have negotiated for our clients save them £8.5 million every year.
When you make a pension contribution, 20% basic-rate tax relief is automatically added by the government.
For instance, if you invest £8,000, the government adds £2,000 (20%) tax relief, increasing your total contribution to £10,000.
If you pay tax at 40% or 45%, you can claim back even more through your tax return.
Remember tax rules can change over time and the benefits will depend on your individual circumstances.
Our award-winning Vantage SIPP lets you choose from thousands of funds run by some of the finest fund managers, including Invesco Perpetual, Artemis and Fidelity. You can also take your pick from individual shares, corporate bonds, gilts, investment trusts, ETFs and cash.
We offer a range of tools to help you find the best investments including:
The greater interest you take in your SIPP, the larger your retirement pot is likely to be.
From age 55 (57 from 2028), you can usually start taking withdrawals, up to 25% normally tax free and the rest taxed as income. The Vantage SIPP offers the new pension freedoms so you can take as much of your pension as you wish. You could choose to take the whole fund as cash in one go, smaller lump sums as and when you like, or a regular income (via income drawdown or annuity). Remember your pension probably needs to last throughout your retirement in order to maintain your standard of living.
Explore your options, the pros and cons of each, and discover how you could maximise your pension fund when you retire, with our guide to Your Options at Retirement.
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.