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Voted Best Buy Pension 2022, Boring Money Awards

What is a SIPP?

This video explains the features and rules of a SIPP (Self-Invested Personal Pension), including tax benefits and pension income options.

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.

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.

Remember, pension and tax rules can change, and benefits depend on your circumstances. If you’re a Scottish taxpayer, tax rates and bands are different.

Learn more about SIPP tax benefits

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.

You’re free to choose from most collective investment funds, UK and overseas shares, investment trusts and more to match your personal values and goals.

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.

See our SIPP investment ideas



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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.

SIPP charges

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.

View SIPP charges

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.

Open a SIPP

Transfer a pension

Transferring your old pensions to HL could make them easier to manage.

Learn more about transferring

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.

Your retirement options

Pension essentials

New to SIPPs?

Download our guide to find out more about how SIPPs work and how to get started.

Download the guide

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.

Read article

Lifetime ISA vs Pension – which is best if you're self-employed?

Run your own business and don't know whether to save into a Lifetime ISA or a pension? Here’s what you need to think about.

Read article

Best Buy Pension 2024
Best Buy Pension
Boring Money Awards 2024
Best Investment App 2024
Best Investment App
Boring Money Awards 2024
Best Online Stockbroker 22/23
Best Online Stockbroker
The Personal Finance Awards 22/23

Help and support

If you have any questions about pensions, you can speak to one of our UK-based client support experts.

Call us on 0117 980 9926

Read our FAQs

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