What is a SIPP?

A 21st century way to save for retirement

A pension remains one of the most tax efficient ways of saving for retirement. In our opinion, a Self Invested Personal Pension (SIPP) offers by far the most exciting opportunities.

Like all pensions, a SIPP offers up to 50% tax relief on contributions and there is no capital gains tax or further income tax to pay. The tax benefits will depend on your 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.

What's more, you can manage your SIPP completely online, enabling you to buy and sell investments at the click of a mouse.

Download our free Guide to SIPPs

More of your money working for you

The Hargreaves Lansdown Vantage SIPP offers some of the lowest costs available and no set-up fees. Low costs mean more of your money working for you.

You can deal shares online from just £5.95 a deal and we offer fund discounts of up to 5.5%. Last year we saved our clients more than £160 million in initial charges.

View the Vantage SIPP charges and interest rates

Let the government boost your pension

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 50%, you can claim back even more through your tax return.

Remember tax rules can change over time and the benefits will depend upon your circumstances.

Find out how you could turn £5,000 into £10,000

Open up your pension to some of the best performing investments

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, covered warrants and cash.

We offer a range of tools to help you find the best investments including:

• SIPP investment ideas from Mark Dampier, Head of Research
• The Wealth 150 - a list of our favourite funds from each sector
• Research updates on many of the funds you hold
• FREE subscription to our Investment Times newsletter

The greater interest you take in your SIPP, the larger your retirement pot is likely to be.

Find out where you can invest your SIPP

What happens to my SIPP when I retire?

When you retire and wish to withdraw funds from your SIPP, normally from age 55, you can usually take up to 25% tax free cash. The remainder is then made available to provide you with a taxable income.

Explore your options, the new 2011 retirement rules and discover how to maximise your pension when you retire, with our guide to Your Options at Retirement.

Request our free guide to Your Options at Retirement