What a SIPP is

A Self-Invested Personal Pension (SIPP) is a type of personal pension that gives you far more control over what it's invested in than a typical workplace pension's default fund. You can usually choose from a wide range of shares, funds, investment trusts and other assets, rather than being limited to a handful of pre-set options.

Who a SIPP suits

SIPPs tend to suit people who are self-employed and have no workplace scheme, want to consolidate pensions from several old employers into one place, or simply want more control and choice than their workplace pension offers. They're generally less suited to people who'd rather not make their own investment decisions — a workplace scheme's default fund, professionally chosen and regularly reviewed, may be a better fit for a hands-off approach.

Tax relief works the same way

Contributions to a SIPP get the same tax relief as other pensions: basic-rate relief is added automatically, with higher and additional-rate taxpayers able to claim further relief via Self-Assessment. This is on top of, not instead of, any workplace pension tax relief.

What to check before choosing a provider

  • Charges: platform fees, fund charges and dealing costs vary significantly and compound over decades.
  • Investment range: some SIPPs offer only a handful of funds; others offer thousands of shares and funds worldwide.
  • Usability: a clear app or platform matters if you'll be checking and adjusting it yourself.
  • Drawdown support: check the provider supports flexible access when you eventually need to take money out, not just the accumulation phase.

The trade-off

More control means more responsibility. A SIPP puts investment decisions — and their consequences — squarely on you, which is either an advantage or a drawback depending on how confident and interested you are in managing your own investments.

Key takeaways

  • A SIPP offers far more investment choice than a typical workplace pension.
  • It suits people who want control, are self-employed, or are consolidating old pensions.
  • Tax relief works the same as other pensions — it's the investment choice that differs.
  • Compare charges and investment range carefully; both vary widely between providers.