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What is a Self-Invested Personal Pension? (SIPP)

A self-invested personal pension (SIPP) is a pension ‘wrapper’ that enables you to save, invest and build up a retirement fund (accessible from aged 55 - moving to 57 as at April 2028). It’s a type of personal pension that works similarly to a standard personal pension. The main/key difference is that with a SIPP you have an open architecture with fewer restrictions and greater fund selection (than your typical workplace defined contribution scheme).


With most common personal pension schemes your investments are managed on your behalf with pooled funds selected by yourself (typically when setting the fund up). Due to the further complexity of SIPPs, it's typical that an authorised investment manager is appointed to ensure the fund is invested responsibly and according to your risk appetite.

What makes a SIPP unique?

  • A SIPP is based in the UK and regardless of where you live it is regulated by UK law.

  • A SIPP is available to you regardless of where you live in the world.

  • Under current legislation, you can start drawing retirement benefits from the age of 55. You can do this even if you are still in employment (UK or Globally).

  • You can access your benefits flexibly (you can draw as much or a little income as you wish with the ability to stop the drawdown process whenever you wish).

  • Current legislation entitles a 25% withdrawal as a tax-free cash lump sum.

  • SIPPs are an excellent product for those planning on retiring in the UK. They are similarly also equally beneficial for those in a nation with a preferential double-taxation agreement with the UK.

  • SIPP investments grow free of capital gains tax or income

A SIPP offers open-architecture investments. But what can you Invest into?

  • Exchange-traded funds (ETFs)

  • Cash holding

  • Shares in companies listed on the main London Stock Exchange (LSE) or AIM

  • Shares in companies listed on a HMRC recognised overseas stock exchanges.

  • Shares in companies traded on an HMRC recognised stock exchange within the European Economic Area (EEA).

  • Fixed interest securities and loan notes listed on the LSE, AIM or any overseas HMRC recognised stock exchange.

  • Real estate investment trusts listed on the LSE, AIM or any overseas HMRC recognised stock exchange.

  • Exchange-traded funds recognised by the FCA and listed on the LSE or a European market.

  • Exchange-traded commodities listed on the LSE, AIM or any overseas HMRC recognised stock exchange (albeit an appropriateness assessment required).

  • Investment Trusts shares listed on the LSE, AIM or any overseas HMRC recognised stock exchange.

  • Unit Trusts, Open-ended investment companies (OEICs) and similar collective investment schemes authorised and/or recognised by the FCA.

  • UK Government treasury bills and other government fixed interest securities.

  • Depositary interests/receipts (including CREST depositary interests) where the underlying investment would be classified as a standard permitted investment.

  • Insurance company funds.

How can we help?

Contact us if you are thinking about setting up a SIPP or already have a SIPP. We can provide more information about your options and establish any potential areas for attention.

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