Your Self Invested Personal Pension (SIPP)
Pensions offer a tax-efficient way to invest for your future - you receive generous government tax benefits, and your fund grows free of capital gains tax and UK income tax.
Providing you are eligible, your employer will make valuable contributions into the SIPP on your behalf. You may also be required to contribute.
Your employer will have informed you as to whether you are eligible or not, how much they will contribute to your pension, and how much you are also required to contribute.
If you wish you can make your own additional lump sum contributions with a debit card or by cheque.
You also have the option of transferring in old private and work pensions. This could save you time and make your pensions easier for you to manage. Transferring is a straightforward process and Hargreaves Lansdown will do the legwork for you.
Before transferring a pension you should ensure you won't lose valuable benefits or incur excessive transfer penalties.
Making contributions using your SIPP
Pensions, such as a SIPP, are one of the most tax efficient ways of saving for retirement. Pension contributions receive generous tax relief from the government. How much you receive will depend on your circumstances.
Pension contribution calculator
See how little your pension contributions could cost
*For more details of the Scottish rate of Income Tax please see GOV.UK
Enter the pay in your pay period on which your pension contributions are based. The calculator assumes this is your only taxable income.
Enter how frequently you are paid.
Enter the amount you wish to contribute as a percentage of your pay.
Enter the percentage contribution your employer adds, based on your own contribution. It is your responsibility to enter the correct percentage – see above or speak to your employer to confirm your company’s contribution basis.
If you can claim higher rate relief or you are affected by the income related personal allowance (based on the assumptions used by the calculator), this is shown here.
Q. I am a higher rate taxpayer. Why is the total tax saving less than 40%?
A. It is only possible to claim back as much higher rate tax as you pay. If you do not pay sufficient higher rate tax, some of the contribution will only be eligible for basic rate tax relief.
Q. What is the income related personal allowance?
A. This allowance affects those with incomes over £100,000. The allowance reduces by £1 for every £2 of income above £100,000. Pension contributions can reduce income for this purpose.
The effective cost to you takes into account basic rate tax relief, any further tax relief and any savings due to reclaiming the income related personal allowance.
Q. Why don’t these figures match my payslip?
A. Your pensionable pay is unlikely to be your only taxable income. The calculator does not take account of non-pension deductions. Other taxes may be deducted using your tax code.
Key benefits of the SIPP
- As much or as little investment choice as you like
If you don't want to choose your own investments, there is a default option. If you want more choice, there's plenty - Where can I invest? »
- Great tools to help you make better financial choices
Hargreaves Lansdown provides a range of tools to help you make more of your money, including free guides, interactive calculators, expert comment and videos. Visit the knowledge centre »
- Low costs
Save up to 5.5% on fund initial charges. Buy and sell funds free, and shares from just £5.95 to £11.95 per deal online, plus a low-cost reinvestment service for funds and shares. View SIPP charges »
- Transfer in other pensions
There is no charge for transferring other pensions into your SIPP - they'll be easier to manage under one roof. Before you transfer a pension, please check you will not lose any valuable benefits or incur excessive exit charges. More about transferring »
You can't normally access the money in a SIPP until at least age 55 (57 from 2028). Please remember taxation depends on your circumstances and tax rules can change over time. Investments can go down in value as well as up so you could get back less than you invest. This website is not personal advice; if you are unsure of an investment's suitability for your circumstances you should seek advice. Correct for 2019/2020 tax year.