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Personal Pensions

Self-managed retirement savings with flexible contributions, investment control, and tax benefits.

SIPP

Self-Invested Personal Pension

Full investment control with wide choice of assets and tax benefits.

Contribution limit:£60,000/year
Access age:55 (57 in 2028)
Tax relief:20-45%

LISA

Lifetime ISA

For first home or retirement with 25% government bonus.

Contribution limit:£4,000/year
Access age:60 (or first home)
Government bonus:25%

These Are Investment Accounts, Not Savings

SIPP, LISA, ISAs, and Junior ISAs are investment wrappers - your money is invested in stocks, bonds, and funds, growing through compound returns over time.

How It Works

  • • Your contributions buy stocks, bonds, ETFs, or funds
  • • Investments grow through market returns (historically ~7-10% annually)
  • • Dividends and gains compound over time
  • • Same compound interest principle as the calculator
  • • Tax-free growth inside these accounts

Real Example: £500/month for 30 Years

Total contributed:£180,000
At 7% annual return:£611,729
At 10% annual return:£1,130,244

The difference between £180k contributed and £611k-£1.1M final value is compound investment growth, not just savings.

What You're Actually Investing In

Stocks & Shares ISA

UK/global stocks, ETFs, funds

SIPP

Stocks, bonds, funds, commercial property

LISA & Junior ISA

Cash or stocks & shares options

SIPP - Self-Invested Personal Pension

£60,000

Annual allowance

25%

Tax-free lump sum

Age 55

Access age

What is a SIPP?

A SIPP gives you control over where your pension money is invested. Choose from stocks, bonds, funds, ETFs, and even commercial property.

Investment Options

  • • UK & international stocks
  • • Bonds and gilts
  • • Mutual funds & ETFs
  • • Investment trusts
  • • Commercial property

Who It's For

  • • Self-employed individuals
  • • Those wanting investment control
  • • Higher rate taxpayers
  • • Pension consolidation
  • • Experienced investors

Tax Relief Examples

Basic Rate (20%)

Pay £80 → Get £100 in pension

Higher Rate (40%)

Pay £60 → Get £100 in pension

Additional (45%)

Pay £55 → Get £100 in pension

SIPP Calculator

Self-Invested Personal Pension

What is a SIPP?

A Self-Invested Personal Pension gives you control over your retirement investments with automatic tax relief from the government. You get 20% tax relief on contributions, and 25% of your pension can be taken tax-free at retirement.

LISA - Lifetime ISA

£4,000

Annual limit

25%

Government bonus

18-39

Age to open

What is a LISA?

Save for your first home or retirement with a 25% government bonus. Must be under 40 to open.

Example

You save:£4,000/year
Government adds:£1,000/year
Total saved:£5,000/year

Can Use For

  • • First home purchase
  • • Retirement (age 60+)
  • • Terminal illness

Key Rules

  • • Open between 18-39
  • • £4,000 max per year
  • • Cash or stocks & shares

Withdrawal Penalty

Withdrawing for other reasons incurs 25% penalty - you'll lose your bonus plus some of your own money.

LISA Calculator

Lifetime ISA with 25% Government Bonus

What is a LISA?

A Lifetime ISA is for ages 18-39. Save up to £4,000/year and the government adds 25% (up to £1,000/year). Use it for your first home (up to £450k) or retirement (age 60+). Early withdrawal = 25% penalty.

Maximum: £4,000/year

SIPP vs LISA Comparison

SIPP Characteristics:

  • • Annual limit up to £60,000
  • • Higher rate tax relief available
  • • Wide investment choices
  • • No age limit to open
  • • Can consolidate other pensions

LISA Characteristics:

  • • Must open between 18-39
  • • Can be used for first home
  • • 25% government bonus
  • • £4,000 annual limit
  • • Tax-free withdrawals at 60

Both Options Available

Some people use both LISA (up to £4k) and SIPP for additional contributions beyond the LISA limit.

Where to Open SIPP & LISA Accounts

Open your SIPP, LISA, ISA, or Junior ISA through FCA-regulated UK investment platforms with £85,000 FSCS protection.

Popular Platforms for SIPP

  • • Hargreaves Lansdown
  • • AJ Bell
  • • Interactive Investor
  • • Vanguard UK
  • • Fidelity

Popular Platforms for LISA

  • • Hargreaves Lansdown
  • • AJ Bell
  • • Moneybox
  • • Nutmeg
  • • Interactive Investor

Complete List of FCA-Regulated Platforms

View our comprehensive guide to UK investment platforms offering SIPP, LISA, ISA, and Junior ISA accounts. All platforms are FCA-regulated with £85,000 FSCS protection.

View All UK Investment Platforms

Personal Pension Questions?

Contact us for information about SIPP and LISA options and retirement savings.