A SIPP (Self-Invested Personal Pension) is a type of UK-based personal pension plan that allows you to save for retirement in a tax-efficient and flexible way. It offers individuals more flexibility and control over how their retirement savings are invested compared to traditional pension schemes. Here's a breakdown:
Key Features of a SIPP:
Tax Advantages: Like other pensions, SIPPs offer tax relief on contributions. For example, the UK government adds 20% to the amount you contribute if you're a basic-rate taxpayer, with higher-rate taxpayers eligible to claim additional relief through their tax return.
Flexibility and Control: SIPPs give more direct control over investments compared to traditional workplace pensions or stakeholder pensions, where the range of investments may be limited.
Long-Term Savings: SIPPs are designed for retirement savings, meaning that typically, you can only access your funds from the age of 55 (rising to 57 in 2028). At that point, you can take 25% as a tax-free lump sum, with the rest subject to income tax.
The SIPP product is provided by Saveable Limited (FCA: 739214) and is managed by Quai Investment Services Limited (FCA: 922590).