A Self-Invested Personal Pension (SIPP) is available to most individuals, but there are specific eligibility criteria and considerations. Here's who can open a SIPP:
1. Age Requirements
Adults: Anyone aged 18 or over can open a SIPP.
Minors: Currently not supported by Plum. According to our Terms & Conditions, Plum services are available for people over the age of 18. Furthermore, Plum does not currently offer Junior SIPP.
2. UK Residency
You must be a resident of the UK for tax purposes to contribute to a SIPP and receive tax relief.
3. Employment Status
Employed Individuals: If you are employed, you can open a SIPP in addition to any workplace pension scheme. In this case, keep in mind that contributions are eligible for tax relief up to certain limits, and employers cannot add money to your personal pension account.
Self-Employed Individuals: A SIPP is particularly attractive for the self-employed, as it provides a tax-efficient way to save for retirement in the absence of a workplace pension.
Unemployed or Low Earners: Even if you don't have earned income or have low earnings, you can still contribute up to £2,880 gross per tax year and get a tax relief of 20%. You can still open a SIPP, but your contribution limit is lower unless you have relevant earnings.
Overall, SIPPs are widely accessible to UK residents with the intention of saving for retirement, though tax relief and contribution limits depend on personal circumstances such as income and residency.