pension
⏱ 3 min read
📅 Updated May 2026
What Is a SIPP? Self-Invested Personal Pension UK Guide 2026
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Pension Guide — April 2026 A SIPP (Self-Invested Personal Pension) is a personal pension that gives you full control over your investments. Unlike a workplace pension where your employer chooses the funds a SIPP lets you invest in shares bonds funds ETFs commercial property and more. How a SIPP Works| Feature | Detail |
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| Tax relief | 20% for basic rate — government adds £25 for every £100 you contribute | | Higher rate relief | Claim additional 20% via self assessment | | Annual allowance | 100% of earnings or £60,000 whichever is lower | | Investment choice | Shares bonds funds ETFs investment trusts commercial property | | Access age | 57 from 2028 (currently 55) | | Tax-free lump sum | 25% of your pot | | Inheritance | Can pass to beneficiaries often IHT-free |
SIPP Tax Relief — The Numbers| Tax Rate | Your Contribution | HMRC Adds | Effective Cost | In Pension |
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| Basic 20% | £800 | £200 | £800 | £1,000 | | Higher 40% | £800 | £200 + £200 via SA | £600 | £1,000 | | Additional 45% | £800 | £200 + £250 via SA | £550 | £1,000 |
SIPP vs Workplace Pension| Factor | SIPP | Workplace Pension |
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| Control | Full — choose own investments | Limited fund selection | | Employer contributions | None | Minimum 3% by law | | Investment choice | Very wide | Usually limited | | Best for | Self-employed higher earners active investors | Most employees |
Best SIPP Providers 2026| Provider | Annual Charge | Best For |
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| Vanguard | 0.15% capped at £375 | Low cost index funds | | Hargreaves Lansdown | 0.45% capped at £200 | Wide choice full service | | AJ Bell | 0.25% capped at £120 | Balanced mid-market | | Interactive Investor | £12.99/month flat | Frequent traders large pots |
Bottom line: A SIPP is ideal for self-employed people and those wanting more investment control. Tax relief is the same as other pensions. Start with a low-cost index fund SIPP from Vanguard or AJ Bell and increase contributions as much as you can afford. |
By Chandraketu Tripathi · Updated April 2026 · kaeltripton.com |
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Part of our complete guide: Best Pension Providers UK 2026 - Complete Guide → Find a regulated IFA →
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The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.
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Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.
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