What is a SIPP?
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In short: A Self-Invested Personal Pension — a personal pension where you choose the underlying investments, with the same tax relief as any other personal pension.
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A SIPP (Self-Invested Personal Pension) is a personal pension that lets you choose which funds, shares and other investments to hold inside the tax wrapper. You get the same tax relief as a standard personal pension: 20% added at source, with higher and additional rate taxpayers able to reclaim more through Self Assessment.
Most SIPPs are now low-cost platform SIPPs that work much like a Stocks & Shares ISA, with annual platform fees of around 0.2–0.45% and fund charges on top.
You can normally start taking benefits from age 55 (rising to 57 from 2028). 25% can usually be taken tax-free, with the rest taxed as income.
Primary source: gov.uk/personal-pensions-your-rights
Part of our Pensions & retirement
This quick answer sits inside our wider pensions & retirement hub — with sub-guides, calculators and step-by-step explainers on the same topic.
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