SIPPs (self-invested personal pensions) can seem like a complex topic at first – but don’t worry, you’ll find all of the answers to your SIPP-related questions in our FAQs guide. Take a look.

What is a SIPP?

Put simply, a Self Invested Personal Pension (SIPP) is a type of personal pension that has great investment powers compared to other pension options. Your pension provider may offer you a SIPP in:

  • Stocks and shares
  • Unlisted shares
  • Investment trusts
  • Property or land
  • Cash

Are there different types of SIPPs?

You may have heard of both low-cost SIPPs and full SIPPs. These are the two different types of SIPPs. A low-cost SIPP means you have no advice from a SIPP company, whereas a full SIPP often comes with a team to help you make investment decisions.

What are the SIPP pension rules?

The rules of SIPP pensions, in regards to contributions and withdrawals, are the same as any other personal pension scheme. For the 2019/20 tax year, this means you can contribute up to £40,000 annually into your SIPP, or 100% of your income if you earn less than £40,000.

When can I take money from my SIPP? 

You can usually take money from your SIPP once you reach the age of 55, or at a later date if you prefer. However, it’s worth noting that, if you take the whole amount at once, only the first 25% of the lump-sum will be tax-free. Anything after this will be taxed just like your income.

Who are the best SIPP providers?

The best providers will vary depending on how you’d like to invest. For example, you might be planning on investing your SIPP in property or into stocks and shares. To find the best SIPP provider for you, you’ll need to look at their individual charges such as annual fees, buying/selling fees and any transfer-out costs.

The best provider for you will also depend on how much you’d like to invest. For example, AJ Bell offer low charges for those investing less than £50,000, while Hargreaves Lansdown offer larger annual charges but are highly-experienced with beginners.

Why do many SIPP investments go wrong?

SIPPs were meant for those who understand investments and have prior experience with them. However, unfortunately, many sellers approached vulnerable people who had no experience with investing and offered them great returns on their investment. If it sounds too good to be true, it likely is.

Don’t worry if you think you might have been mis-sold your SIPP investment, our team can help you claim back what is rightfully yours. Firstly, take a look at the classic signs you were mis-sold – these can range from not being given enough information to the risk never being fully explained to you beforehand.

How do I claim for a mis-sold SIPP?

If you believe you were mis-sold your SIPP, you can start a claim for mis-sold pension compensation with us today. It’s really simple. Fill out the form on our website and one of our experts will be in touch with you shortly to get started. We’ll submit your claim for you and work on a no win no fee* basis, so you can be certain you’re in safe hands. We’ll keep you updated every step of the way.

If you prefer, you can call us directly on 0161 968 0768 to get started. In the meantime, keep an eye on our pension guides section for more advice regarding your SIPP investment.