SIPPs

“The question isn't at what age I want to retire, it's at what income.” George Foreman

Give yourself the best chance of getting the retirement you want, start your pension now and there’s longer for it to grow. That could mean retiring at the age you want, with the income you want, free to do the things you want to do. Your future self will thank you for it!

What’s more, whether you’re employed, self-employed or not working, the Government helps by contributing to your pension growth through tax relief.

For people who like to manage their own money, and want to consolidate other personal pensions and take full advantage of the new pension freedoms that apply from 6 April 2105, a SIPP can be a great way to achieve the retirement you want. 

What is a SIPP?

A ‘Self Invested Personal Pension’ is a ‘personal pension’ that you manage yourself.

Any contributions you pay in benefit from tax relief (limits apply) and you can invest that money across a broad range of investments to create the right balance between risk and returns.

When you’re younger, your focus might be capital growth; and in your later years, income. With a SIPP as your pension scheme it’s easy to make that transition.

You can transfer existing personal pensions into a SIPP, make regular and ad hoc contributions, and even move existing investments across via what’s known a ‘bed and SIPP’ process.

See how a SIPP puts you in control of your retirement

Benefits of our Account

Add a Self Invested Pension Plan to your investment account for just £96pa

When you join Interactive Investor we charge a  £20 quarterly fee for the account, but you get the equivalent back each quarter as commission credit (£20, which equates to  two free trades) which can be used across your SIPP, ISA and trading accounts.

Our SIPP account benefits include:

  • Flat SIPP administration fee of just £96pa
  • No set-up fees
  • Wide investment choice - including UK and international shares, over 2,800 funds and an extensive range of clean funds
  • £10 flat-fee for all real-time investments, or £5 per trade with our Frequent trader rate
  • Plus with an Interactive Investor account you can add an ISA and Junior ISAs for free

More about our SIPP

Why Choose a SIPP?

SIPPs give you choice, flexibility and control.

Most personal pensions are provided by insurance companies or fund management companies who may limit the choice of investments you can make in your pension; often to their own funds or a limited range. They may not offer the flexibility you need, or provide the full range of options available on retirement that the new pension freedoms will introduce.

Good ForNot Good For
  • Tax-efficient investing for your retirement: as with other types of pension, you get up to 45% tax-relief on contributions (some limits apply). That boosts your pension from the start, with more money invested to grow over time. You can find out how you’ll benefit in our Guide to pension tax relief.
  • Control: it’s your money so you make the decisions. Choose where to invest. And when. Then, when the time comes, you decide the best way to take money from it in retirement. Extra control can come from bringing other personal pensions together in your SIPP.
  • Choice and flexibility: invest where you want, when you want.  Pay-in regular, monthly sums from your salary, lump sums (from a bonus for example), or both. Your employer can contribute too.
  • Consolidation of previous pensions: transfer other personal pensions to hold all your retirement investments in one place.
  • Money you might want earlier access to: you cannot usually draw on your pension until age 55. (That’s 10 years earlier than the current state pension age.) (An ISA can be a good alternative for this accessible part of your savings.)  
  • Replacing a final salary scheme: if your company’s scheme is one that’s linked to your final salary it’s one of a dying breed, so it’s generally best to hang on to it! This generally applies where your employer’s contributions are only available when you pay into the company scheme as well.
  • Times when you want someone to make investment decisions for you. People who aren’t happy to make their own investment decisions or are happy with just a restricted range of investment funds will generally find a SIPP isn’t the best solution. A stakeholder pension might be preferable.

Pensions are changing from 6 April 2015.

When the time comes for you to start drawing on your pension pot, you’ll have the freedom to choose a plan that suits your needs:

  • Take all the money out as cash in one go
  • You can take as much as you want when you want it, as a monthly income, ad-hoc lump sums or a mixture of both
  • Continue to take a guaranteed income via an annuity
  • Mix and match these options for the perfect solution

New pension freedoms from 6 April 2015

What will your SIPP be worth?

Four key things affect how your pension will grow – and how long it will last:

1. How much you pay in, and for how long: the sooner you start, the better off you’ll be.

2. Where you invest: different investments will provide different opportunities for growth and income. In general, the higher the growth potential, the higher the risk.

Investments you can have in your SIPP

3. The charges you pay: charges - especially ones charged as a percentage of your pension value - might not have a big impact in the early days, but as your pension fund grows over time, those small nibbles can turn into big bites.  With an Interactive Investor SIPP you just pay a quarterly account fee of £20, which includes £20 quarterly credit, and a flat SIPP administration fee of £96.

See how charges affect your pension fund

4. How much you draw out of it as income: it’s no surprise that the more you draw from your pension, the quicker it will run out. So how long will your pension last?

Find out more

Investment inspiration for your SIPP

Just because you’ve chosen to manage your own pension doesn’t mean you have to do it all on your own.

Whether you’re looking for inspiration, want to see what others investors like you are doing, or want to narrow the field, we can help. Our investment ideas give you inspiration to act on.

  • Consider our selection of model portfolios, which you can use to research further or to buy.
  • Get share tips and other ideas from our investment experts.
  • Review performance tables
  • Interact with fellow investors in our active forums
  • Use our investment tools to help you decide.

Investment ideas

Are you making the most of pension tax relief?

The boost your pension gets from basic rate tax relief straight into your pension can really add up over time. Plus you‘ll get additional tax relief via you tax return - adding £5,000 to your pension could cost you as little as £2,750.

More about pension tax relief

Top up your pension with existing investments

Contributions into your personal pension can come from investments you already hold or from transferring in other personal pensions. But, as with an ISA, you can’t simply transfer them across. You’ll need to sell, then buy them back again. 

Your retirement starts here

Open your SIPP today and start planning for life after work

Open your SIPP account

 A SIPP is a type of personal pension, best suited to those who wish to make their own investment decisions. Please be aware of the risks involved. The value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. Your can normally only access the money in a pension from age 55. Tax treatment depends on your individual circumstances and may be subject to change. If in any doubt as to whether a SIPP is right for you, please seek advice.

Transfer to Us

Switch your account to us today and get clear, low cost fees and up to £200 towards your exit fees (terms apply).

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Read Our SIPP Guide

See how the biggest shake-up in pension rules for almost a hundred years will affect you and your pension. Our guide explains how the new rules work and sets out your options and what that might mean for you.

Get the full story with our SIPP guide

Read Our Pension Tax Relief Guide

pension tax relief guide See how pension tax relief works, who gets it and what it means for the growth in your pension pot.

Get the full story with our pension tax relief guide

The Interactive Investor SIPP advantage

  • Efficient, easy-to-use and reliable online account with iOS© and Android© apps.
  • Fair, clear and straightforward charges - so you know exactly where you are
  • Friendly, helpful and jargon-free service  - we speak your language
  • Guides, information and ideas - helping you become a better investor

Need quicker access to your investments?

You can’t usually withdraw money from your pension until 55. So, for tax-efficient investment you can still use whenever you need, make use of your annual ISA allowance and choose an Interactive Investor ISA .