What is a SIPP?
A Self-Invested Personal Pension (SIPP) is one of the most tax-efficient ways to invest for your retirement.
Your (and your employer's) contributions are invested over time to give them a chance to grow.
Like a Personal or Group Personal Pension, you receive tax relief when you contribute and your money grows free of UK capital gains tax and there is no further personal UK income tax to pay.
The principle difference between a SIPP and other pension plans is that it offers much more investment choice for those who want it. For instance, you can invest in a choice of over 3,000 funds, as well as shares, investment trusts, and government and company bonds.
Hargreaves Lansdown will provide you with plenty of information to help you make your own investment choices, so whatever your circumstances there is likely to be a suitable investment available to you.
If you don't want to make any investment choices, your contributions can automatically be directed into the company's default investment.
From the age of 55 (57 from 2028) you will be able to take as much of your pension as you wish; usually up to 25% tax free and the rest taxed as income.
Discover the pros and cons, how the tax rules work and getting started with this free, easy-to-read guide to SIPPs.
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 2021/2022 tax year.
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