What is a SIPP?
What is a SIPP and how does it work?
A Self-Invested Personal Pension (SIPP) is a type of pension that lets you choose your own investments and from a much wider range than other pensions. This could help you to grow your retirement savings and give you access to more opportunities and greater returns over the long term. But you must be comfortable managing your pension on your own and accept the risks of investing.
Investments fall as well as rise in value, so you could get back less than you invest. If you’re not sure which investments are right for you, our financial advice service could help.
What are the tax benefits of a SIPP?
Self-Invested Personal Pensions offer the same generous tax benefits as other pensions.
- Tax-free investing - grow your money free of UK income and capital gains tax.
- Get between 20%-45% tax relief - on your personal contributions up to the amount you earn (usually limited to £60,000), if you’re a UK resident and under age 75.
- Normally free from inheritance tax - pass on pension wealth tax efficiently, and in some cases completely tax free.
What can I invest my SIPP in?
A SIPP gives you the flexibility to invest where you want to. It offers a wider investment choice than other personal or stakeholder pension plans, giving you the potential for greater returns.
We have plenty of free tools and information, including share insight and fund research, to help you pick your own investments with confidence. But if you'd prefer, you can select a ready-made portfolio or pay for personal investment advice.
Investments fall as well as rise in value so you could get back less than you invest.
HL READY-MADE PENSION PLAN
A new investment solution which will make starting a pension even easier.
HL READY-MADE PENSION PLAN
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Is a SIPP right for me?
This will depend entirely on your circumstances.
For some, a SIPP can be a useful way to take control and combine existing pension pots for easier management or access at retirement. It can often be a tax-efficient way to save and invest alongside an existing workplace pension. If you have access to a workplace pension, make sure you’re maximising any employer contributions and matching opportunities before paying into a personal pension.
For others, saving for retirement can fall entirely on your shoulders. If you’re self-employed or own your own business, there’s no employer to set up a pension or make payments on your behalf. In these circumstances, the onus is on you to save for retirement. A SIPP could be a good option.
The HL SIPP is free to set up and low cost to run. Our yearly charge for holding investments is never more than 0.45%. Some investments will have their own annual charges, so please check these first before you invest.
It’s free to buy and sell funds. Other dealing charges depend on the type of investment and how often you trade.
How to open an HL SIPP
Start with a bank payment
Set up a Direct Debit from as little as £25 a month, or make one-off payments of £100 or more.
You'll always have the flexibility to stop or pause payments whenever you want.
Transfer a pension
Transferring your old pensions to HL could make them easier to manage.
Once you've given us the details of your current provider, we'll sort the rest.
Taking money from a SIPP
When you reach your 55th birthday (or your 57th from 2028), you can start making withdrawals from your SIPP, even if you’re still working. You can usually take up to 25% of your pot tax free. The rest of your withdrawals will be taxed as income.
New to SIPPs?
Download our guide to find out more about how SIPPs work and how to get started.
Types of pension
There are a number of different pension types in the UK. One way to categorise them is into private pensions, workplace pensions, and the State Pension.
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They're always happy to assist, professional at all times and extremely knowledgeable.
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