Self Invested Personal Pensions (SIPPs)

Maximise your pension with a SIPP

A Self Invested Personal Pension (SIPP) gives you greater control over how your retirement savings are invested. Unlike many traditional pension schemes, a SIPP allows you to choose from a wide range of investments, helping you build a retirement fund that reflects your personal objectives and attitude to risk.

Whether you’re an experienced investor, a company director, or simply looking for more flexibility than a standard personal pension can offer, professional advice can help you decide whether a SIPP is the most suitable solution. Self-invested pensions are SIP Wealth Management’s core specialism, and it’s where the firm takes its name.

What is a Self Invested Personal Pension?

A Self Invested Personal Pension is a type of personal pension that allows you to make your own investment decisions while keeping the valuable tax advantages available to UK pension schemes.

A SIPP works much like any other registered pension, but instead of being restricted to one provider’s range of investment funds, you can choose from a much broader selection of assets, including shares, funds and commercial property (subject to pension rules and provider restrictions).

Many investors choose a SIPP because it provides greater flexibility, increased investment choice and more control over long-term retirement planning.

Why choose a SIPP?

A SIPP offers a number of important advantages:

Greater control over your retirement investments.
Access to a wider range of investment opportunities than a standard personal pension.
Tax relief on contributions at your marginal rate of income tax. You can contribute up to 100% of your earnings each year, within the £60,000 annual allowance.
Tax-efficient growth: investments inside your SIPP grow free of UK income tax and capital gains tax.
Tax-free cash: normally up to 25% of your fund from age 55 (rising to 57 from April 2028), capped at the Lump Sum Allowance of £268,275.
Flexible retirement income options, including flexi-access drawdown, annuity purchase or a combination.

While a SIPP offers significant flexibility, it is not suitable for everyone. Choosing the right pension structure depends on your financial goals, investment experience and retirement plans.

How does a SIPP work?

With a traditional personal pension, investment decisions are largely made for you. A SIPP gives you much greater involvement in how your pension is invested.

You can manage your investments yourself or appoint a professional investment manager to make decisions on your behalf. Many of our clients combine the two: SIP Wealth Management advises on strategy and manages the portfolio through our risk-profiled investment process, while the client retains control of the big decisions. This flexibility makes SIPPs particularly attractive to investors who want greater control over their retirement planning without sacrificing the tax benefits of pension saving.

As with any investment, the value of your pension can rise or fall, and future returns cannot be guaranteed.

What can a SIPP invest in?

Depending on the pension provider, a SIPP may allow investments in:

UK and overseas shares
Investment funds, unit trusts and OEICs
Investment trusts
Exchange Traded Funds (ETFs)
Government and corporate bonds
Cash deposits
Commercial property: a distinctive SIPP feature. Business owners often hold their trading premises in their pension, with the business paying rent into the fund
Certain alternative permitted investments

Most SIPPs do not permit direct investment in residential property without significant tax consequences, although indirect exposure may be available through certain regulated investment funds.

Planning ahead: pensions and inheritance tax

From 6 April 2027, unused pension funds will normally be included in your estate for inheritance tax purposes, a significant change from the current rules. SIPP holders with substantial funds should review their withdrawal strategy and estate planning before then. We are actively working through this change with clients now.

Professional SIPP advice in Swansea

Choosing the right pension structure can have a significant impact on your retirement. Whether you are considering opening a SIPP, transferring existing pensions, or purchasing commercial property through your pension, independent advice helps you make informed decisions with confidence. Call 01792 720 200 to arrange a free initial consultation at our Swansea or Mumbles offices.

Please note: pension rules and tax legislation may change in the future, and the value of investments can fall as well as rise. Tax treatment depends on your individual circumstances.

Frequently Asked Questions

What is a Self Invested Personal Pension in simple terms?admin2026-08-19T10:35:32+01:00

What is a Self Invested Personal Pension in simple terms?

A SIPP is a “do-it-yourself” pension: a tax-advantaged wrapper in which you choose the investments (shares, funds, even commercial property) rather than being limited to an insurance company’s fund range. Tax relief on contributions and tax-free growth work exactly as in any other UK registered pension.

Who should consider a SIPP?admin2026-08-19T10:37:16+01:00

Who should consider a SIPP?

A SIPP often suits investors who want greater investment choice, company directors and business owners, people consolidating several old pensions under one strategy, and experienced investors, particularly those working with a financial adviser. If you simply want a low-cost, hands-off pension, a standard personal or workplace pension may serve you better.

What tax relief do I get on SIPP contributions?admin2026-08-19T10:37:43+01:00

What tax relief do I get on SIPP contributions?

Contributions receive tax relief at your marginal rate: basic-rate relief of 20% is added automatically, and higher and additional-rate taxpayers can reclaim a further 20% to 25% through self-assessment. You can contribute up to 100% of your earnings each year, capped by the £60,000 annual allowance (lower for very high earners and for anyone who has flexibly accessed a pension).

Can I buy commercial property through a SIPP?admin2026-08-19T10:38:06+01:00

Can I buy commercial property through a SIPP?

Yes. Offices, shops, industrial units and land can be held in a SIPP, and many providers permit borrowing of up to 50% of the scheme’s net assets to help fund a purchase. Business owners often hold their own trading premises this way, with rent paid by the business growing the pension tax-efficiently. Residential property is not normally permitted.

When can I access my SIPP?admin2026-08-19T10:38:44+01:00

When can I access my SIPP?

Normally from age 55, rising to 57 on 6 April 2028. Up to 25% can usually be taken tax free (capped at the £268,275 Lump Sum Allowance), with the balance taxed as income when you draw it, whether through flexi-access drawdown, an annuity, lump sums or a combination.

Can I transfer existing pensions into a SIPP?admin2026-08-19T10:39:13+01:00

Can I transfer existing pensions into a SIPP?

Usually, yes. Consolidating old workplace and personal pensions into one SIPP is one of the most common reasons to open one. However, some older schemes carry exit fees or valuable guarantees (particularly defined benefit pensions) that would be lost on transfer, so always take advice before moving a pension.

What is the difference between a SIPP and a SSAS?admin2026-08-19T10:39:37+01:00

What is the difference between a SIPP and a SSAS?

A SIPP is an individual personal pension. A SSAS is an occupational scheme established by a limited company for up to 11 members (usually directors and family) who act as trustees together. A SSAS can lend up to 50% of its assets to the sponsoring company, which a SIPP cannot do. See our dedicated SSAS page for full details.

Is a SIPP suitable for everyone?admin2026-08-19T10:40:08+01:00

Is a SIPP suitable for everyone?

No. A SIPP’s wider investment choice can come with higher charges, and the investment risk sits with you. It tends to reward people who will genuinely use the flexibility; for straightforward needs, a standard personal pension is often better value. Independent advice will establish which suits your circumstances.

Last reviewed: August 2026

Self Invested Personal Pension Enquiry

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