A Self-Invested Personal Pension (SIPP) is a type of account that allows you to save for retirement in a tax-efficient and flexible way.
SIPPs work much in the same way as other personal pensions. You add money to your pension as and when you like. The government pays in an extra 20% in pension tax relief.
If you pay a higher rate of tax, you’ll usually be able to claim back even more with your tax return. Once it’s in your SIPP, your money can grow free from UK capital gains and UK income tax. The benefits you can receive are subject to UK pensions legislation. This includes rules about limits on contributions that can qualify for tax relief, the earliest age you can take benefits and limits on what those benefits can be without incurring tax penalties, including the amount that can be taken as tax-free cash.
You can even use a SIPP to combine all your old pensions into one easy-to-use online account. And take money out from age 55 (rising to 57 from 2028).
The pension plan is designed to let you:
Save for retirement in a tax-efficient and flexible way.
Build up a pension fund to give you an income and a tax free cash sum.
Take control of your pension investments.
Make transfers from other suitable pension arrangements.
Specify to whom you would like benefits to go to on the event of your death, although the decision rests with the Scheme Administrator.
Via Plum, you will be able to consolidate your existing pension pots so that you can monitor and control your pension and the contributions through a single app.
Please note that at the moment, SIPP feature is available on iOS devices only.