What is a SIPP?

A SIPP is a self-invested personal pension. Put simply, it’s a pension that you manage yourself.

SIPPs are designed for people who want to take control of how their pension savings are invested. They’re tax-efficient too. 

You can make contributions with your own money, through a regular savings plan or lump sums. Others can contribute on your behalf, including your employer or family members. And you can transfer an existing pension to your SIPP.

You can also decide how much to invest and where to invest. Fidelity’s SIPP provides the opportunity to invest in unit trusts, shares, cash or open-ended investment companies. These are funds which invest in stocks and other securities.

So, how much of your hard-earned cash might be taxed? The good news is that the investments in your SIPP will grow free of income tax and capital gains tax. That’s not all. For every £800 you save, the government gives you tax relief, boosting your savings by £200 to a total contribution of £1000. And if you’re a higher-rate taxpayer, you can claim more tax relief, through your annual tax return.

But it’s important to consider annual and lifetime limits on how much you can save in your pensions, to keep them tax efficient.

It’s also OK to have more than one pension. You can have a SIPP at the same time as a workplace or personal pension, whether that’s with us or another pension provider.

If investing in a SIPP sounds like something you’d like to consider, it may be sensible to talk to an authorised financial adviser before making a decision.

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