Start drawing money from your SIPP from the age of 55. If you need access to your money before that, you may want to consider a Stocks & Shares ISA instead.
Create opportunities for your retirement by investing your pension, your way. This could allow you to stop working earlier or travel to those destinations you always dreamed of.
Receive up to 45% tax relief when you make a personal contribution to a SIPP, with 20% paid by HMRC to the pension and any higher and additional rate tax relief reclaimable via your tax return.
SIPP stands for Self-Invested Personal Pension, a type of personal pension ideal for those who want to take more control of their investments for retirement.
Although many other types of pensions limit your investment choice, a Self-Invested Personal Pension allow you to invest in a wide variety of:
This flexibility allows considerable opportunities, but you need to take responsibility for your investment choices, or you can work with one of our Financial Professionals to manage your investments for you. Remember, unlike an ISA, SIPPs are for the long term, as they don’t allow you access to your money until retirement age, which at the earliest is 55. This is set to rise to 57 in the future.
Pension plans can seem complex at times but a conversation with a Financial Professional can help you manage your tax affairs as efficiently as possible. Explore our retirement planning services to ensure you have enough money saved to get the retirement you want.
The age you retire depends on how much is saved so far and how you want to draw an income. Gain a better understanding of your savings and the best way to use them during retirement.
When it comes to planning your retirement, you can’t afford to leave anything to chance. We’ll help you take control, so you have financial security and flexibility over when and how you retire.
A carefully designed financial plan can give you the freedom to do even more of the things you want to do and maybe even things you never thought possible.
We have a wide range of investment services, offering you the flexibility to be as involved as much or as little as your like.
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Get support from our experts when choosing your investments with either our Advisory Managed or Advisory Dealing Services.
You are eligible to open a SIPP account as long as you are a UK resident under the age of 75. You may contribute to as many pensions as you like simultaneously but please be aware of your personal contribution limits and the annual and lifetime allowances.
Investments held in SIPPs are free from income tax and capital gains tax. When paying into your SIPP you will also receive government tax relief, with the amount depending on your circumstances. The government automatically tops up eligible contributions with 20% in pension tax relief, with any further higher or additional rate relief reclaimed by you.
Firstly you get tax relief on your personal contributions to your pension, please read further details on this in the "How does tax relief work?" FAQ.
In addition, you won’t pay capital gains tax on any profits and there’s no tax on dividends from shares or the income earned on bonds.
From age 55 onwards (57 from 2028), you have the option of making unlimited withdrawals. Typically you may take 25% of the pension tax-free and the rest is taxed as income. Our SIPP gives you the flexibility to make withdrawals as you wish - the whole fund may be taken as a lump sum, smaller lump sums or a regular income. Please note a pension may need to last throughout your retirement to find out if you have enough, try our pension contribution or drawdown calculators.
You can pass on the remainder of your pension tax-free to your heirs. Any residual monies left in your pension when you die can typically be passed to your heirs free of an inheritance tax charge. Any withdrawals your heirs then make will usually be tax-free if you died before you were aged 75. If you die when aged 75 or older any withdrawals will be taxed as income at their marginal rate.
Any UK resident under the age of 75 qualifies for basic rate tax relief of 20% on pension contributions up to applicable limits. Higher-rate and additional-rate taxpayers may claim up to a further 20% and 25%, respectively, back through their tax return. Tax year rates of tax and pension tax relief for Scottish taxpayers differ from the rest of the UK. For more information please refer to our guide.
Yes, you can transfer existing pensions to a SIPP to consolidate and manage your pension investments, but there are certain pension types that are inappropriate and not in your interest to transfer. These include workplace pensions where you employer is contributing, schemes with significant exit penalties, and defined benefit schemes with guarantees and other features attached to them that would be lost when transferring.
You’ll only get tax relief on personal pension contributions up to 100% of your UK earnings. There is also an annual contribution allowance to all your pensions of up to £40,000 for most people, dependent on earnings for the tax year and whether you have drawn any taxable retirement benefits. If you’ve already taken money out of a pension, or you’re a higher earner, your annual allowance could be significantly lower. Low or non-earners can also benefit from some basic rate tax relief by contributing a maximum of £2,880 a year (£3,600 after tax relief) to their pension(s).
Charles Stanley has their own SIPPs allowing you to invest in a wide range of investments. You can benefit from a structure that includes all the flexibility permitted by HM Revenue & Customs as regards drawing your benefits, including phasing your retirement.
Alternatively, we partner with a wide range of SIPP providers, contact us to find out more.
A SIPP allows you to invest in wide range of assets, including shares, bonds, funds and investment trusts:
A Bed & SIPP is a method of contributing to your SIPP using shares held in your investment account. On your instruction, we will sell your chosen investments in your investment account, top up your SIPP with the proceeds in cash (which will be eligible for tax relief) and then buy back the shares to the value of the net contribution immediately. Once received the tax relief will be held in the SIPP cash account pending your investment instructions.
You have two main options at retirement: Continue investing and take out money from your pot as and when needed (also known as pension drawdown), or use your pot to buy an annuity that guarantees a regular income for life. It is possible to take up to 25% as a tax free lump sum with the remainder of benefits taxable. Taking pension benefits is a complex issue and any decision must be carefully considered.
Get a better understanding of your current situation and the options available to you, take advantage of a free consultation with a financial expert.
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Save securely and invest in your future with our range of account options. Make the most of your tax allowances or exemptions, whilst making sure you can access your money when you need it.
Make your savings work harder with our flexible ISA. Shelter up to £20,000 per tax year.
Give your children a financial head start with our JISA. Shelter up to £9,000 per tax year.
Start investing today with a wide range of funds and shares or transfer and consolidate any existing holdings.
Charles Stanley is not a tax adviser. Information contained within this page is based on our understanding of current HMRC legislation. Tax reliefs and allowances are those currently applying and the levels and bases of taxation can change. Tax treatment depends on the individual circumstances of each person or entity and may be subject to change in the future. If you are in any doubt, you should seek professional tax advice.
The tax treatment of pensions depends on individual circumstances and may be subject to change in future. It is always recommended that you seek advice from a suitably qualified investment professional if you have any doubt as to the suitability of a pension and/or the underlying investments. You should be aware that Stakeholder Pension Schemes are generally available and might meet your needs as well as a SIPP. Please remember the value of investments may fall as well as rise and your capital is at risk.
*Tax relief for Scottish taxpayers differs from the rest of the UK.