Personal & Self-Invested Pensions (SIPPs)
Personal pensions and SIPPs give you full control over where your retirement savings are invested, making them popular with the self-employed and savvy savers.
A personal pension is a private pension you arrange yourself with a pension provider. A Self-Invested Personal Pension (SIPP) is a type of personal pension that gives you greater control over your investments — you can choose from a wide range of assets including shares, funds, and bonds.
Who are they for?
Personal pensions are ideal for self-employed individuals, those without access to a workplace scheme, or anyone who wants to save more on top of their workplace pension. There's no upper limit on how much you can contribute, though tax relief is capped at your annual earnings or £60,000 (the Annual Allowance), whichever is lower.
Tax relief
Contributions to personal pensions attract tax relief at your marginal rate. A basic rate taxpayer effectively pays £80 for every £100 that goes into their pension. Higher and additional rate taxpayers can claim even more relief through their self-assessment tax return.