Calculate your pension pot for retirement with InvestEngine

A SIPP, or a Self‑Invested Personal Pension, is a specialised pension scheme available in the United Kingdom. Unlike traditional pension plans, SIPPs offer individuals a much broader range of investment options and greater control over their retirement savings.

The key feature of a SIPP is that it offers a level of autonomy and flexibility that traditional pension plans do not. This means that individuals can tailor their investments to align with their risk tolerance, financial goals, and investment preferences.

On our platform eligible clients can make use of all the traditional InvestEngine products such as Managed Growth Portoflios, Savings Plans, Rebalance, AutoInvest, and more, all within the pension ‘tax‑wrapper’. 

Moreover, SIPPs come with tax advantages. Contributions made to a SIPP are typically tax‑deductible, and investments grow tax‑free. However, there are limits on contributions and restrictions on when you can access your funds, usually linked to the age of retirement.

In summary, a SIPP is a versatile retirement savings vehicle that empowers individuals to take charge of their pension investments, offering a diverse range of asset choices and tax benefits while adhering to pension regulations and rules in the UK.

Further information on SIPP terms and what they mean can be found here. 

In the UK, a Self‑Invested Personal Pension (SIPP) is available to a wide range of individuals who want to save for their retirement. However, there are some eligibility and age restrictions to keep in mind. Here are the key points regarding who can open a SIPP:

1. Age Requirement: You can open a SIPP if you are 18 years old or older, up to a maximum age of 75.

2. Residency: You need to be a UK resident to open an InvestEngine SIPP and you should be a UK taxpayer to benefit from tax relief on your contributions. Non‑residents can open SIPPs (unfortunately not with InvestEngine), and they may not receive the same tax benefits. 

3. Employment Status: You do not need to be employed to open a SIPP. It is available to employed individuals, self‑employed individuals, and those who are not working.

You can open your InvestEngine SIPP with just £100 for a Managed Portfolio.
The minimum investment for clients wanting to open a DIY SIPP portfolio is £100. Regular contributions are optional and the minimum is £20 a week or £50 a month.

Further information on how to fund your portfolios can be found here.

Who can pay contributions to my InvestEngine Pension Plan?

At present, we only accept personal contributions paid by you.

In order for you to be able to gain tax relief on your personal contributions you need to be a UK resident or you have relevant UK earnings chargeable to income tax and are under age 75.

Will I receive tax relief on my contributions?

Contributions paid to your InvestEngine Pension Plan are treated as being paid net of basic rate income tax. Once received we will make a claim to HMRC to have the basic rate of income tax that you paid on the net contribution paid to your InvestEngine Pension Plan. For example, if you want to pay a gross contribution of £10,000, you would pay a net contribution of £8,000 and HMRC would pay £2,000 to your pension.

You will need to claim any additional tax relief you may be entitled to in your self‑assessment tax return. There is no tax relief for such contributions on or after your 75th birthday.

Please note that it can take between 6 and 11 weeks for HMRC to send us your basic rate tax relief.

Is there a limit on the amount of tax relief that I can receive?

You will only get tax relief on your personal contributions in a tax year provided the total gross amount (this being the net amount that you paid in and the corresponding basic rate of income tax relief) does not exceed the greater of (i) £3,600 and (ii) the amount of your relevant UK earnings chargeable to tax for that tax year.

What is your annual allowance?

Your annual allowance is the limit on the amount of pension savings that can be made to all your pension schemes in a tax year before you have to pay tax on them. So, if the total gross amount of contributions in a tax year to the InvestEngine Pension Plan and any other registered pension schemes (including benefit increases in defined benefit schemes where relevant) exceed your available annual allowance, money purchase annual allowance or tapered annual allowance, whichever is/are applicable, you will be subject to a tax charge.

The annual allowance for the current, and previous three tax years are shown below.

Your annual allowance might be lower if you have flexibly accessed your pension pot or you a high income.

Flexibly accessing your pension pot means that you have received taxable income from a pension or purchased an annuity. If this is the case your annual allowance for the current, and previous three tax years are shown below.

If you are a high earner you can assess your tapered annual allowance (known as your tapered annual allowance) via this link.

Can I carry forward any unused annual allowances on my pension savings?

If you have used up all of your annual allowance or tapered annual allowance in a tax year, it may still be possible for further contributions to be made in that year provided you have unused annual allowance or tapered annual allowance available from one or more of the immediately preceding three tax years to carry forward to the tax year in question and you were a member of a registered pension scheme in each relevant year.

As mentioned earlier, full tax relief will only be available on contributions paid in a tax year by you provided your relevant UK earnings for that tax year are at least equal to the amount of those contributions. Carry forward is not available if the money purchase annual allowance applies.

How is the available annual allowance used up?

The annual allowance for the current tax year is used first.

The unused annual allowance from the previous tax years is then used, beginning with available unused annual allowance from the earliest tax year first.

Example 1

Frederick (aged 25) opened his InvestEngine Pension Plan in the 2024 – 25 tax year. This was his first pension account and he is not a high earner.

The annual allowance for 2025 – 26 is £60,000.

As Fredick was not a member of a registered pension scheme in any of the previous three tax years he doesn’t have the ability to carry forward unused annual allowance.

Example 2

Sally (aged 39) has been a member of a registered pension scheme for 10 years and she is not a high earner.

The annual allowance for 2025 – 26 is £60,000 and, as Sally has been a member of registered pension scheme, she can carry forward available unused annual allowance from the previous three tax years.

In the previous three tax years her pension input amounts were:

2024 – 25 – £15,000 (annual allowance for this tax year was £60,000)

2023 – 24 – £12,000 (annual allowance for this tax year was £60,000)

2022 – 23 – £10,000 (annual allowance for this tax year was £40,000)

Sally has unused annual allowance from those three tax years of:

2024 – 25 – £45,000 (annual allowance for this tax year was £60,000)

2023 – 24 – £48,000 (annual allowance for this tax year was £60,000)

2022 – 23 – £30,000 (annual allowance for this tax year was £40,000)

This means Sally has £123,000 unused annual allowance to carry forward to 2025 – 26, as well as the annual allowance for the 2025 – 26 (£60,000).

Please note though that relief is permitted provided the total gross amount does not exceed the greater of (i) £3,600 and (ii) the amount of your relevant UK earnings chargeable to tax for that tax year. So, in order for Sally to receive relief on gross contributions for current tax year of £183,000 she would need to have earnings in excess of this amount.

The InvestEngine Personal Pension operates under relief at source. This means that for every pension contribution we receive our pension provider claims tax relief from HM Revenue and Customs (HMRC) at the basic 20% rate. This process takes between six and eleven weeks but once the funds are received we add this directly to your InvestEngine Personal Pension.

For example, you pay us a contribution of £80 and we claim relief of £20 from HMRC (this being 20% of the gross contribution of £100).

If you are resident in England, Northern Ireland or Wales you can claim additional tax relief for money you put into relief at source pensions of:

• 20% up to the amount of any income you have paid 40% tax on
• 25% up to the amount of any income you have paid 45% tax on

If you are resident in Scotland you can claim additional tax relief for money you put into a private pension of:

• 1% up to the amount of any income you have paid 21% tax on
• 22% up to the amount of any income you have paid 42% tax on
• 25% up to the amount of any income you have paid 45% tax on
• 28% up to the amount of any income you have paid 48% tax on

If you already submit a Self Assessment tax return then you should claim the additional tax relief through this return. If you are using this process then there is no immediate need to submit any form of evidence. HMRC receive reports from pension providers which will allow them to verify your claim. 

If you do not submit a Self Assessment tax return then you should call or write to HMRC to claim the additional relief. The details of how to contact them are shown in this link: Income Tax: general enquiries ‑ GOV.UK. If the additional relief claim is less than £10,000 then there is no immediate need to provide any form of evidence of contributions paid. HMRC require your total gross contribution for the tax year (this being the net contribution plus the tax relief received into the pension). 

We have prepared the attached template letter which you can use when requesting your additional tax relief to be paid to you (please see the attachment below).

If the additional relief claim is in excess of £10,000 then the claim must be made in writing and you should enclose evidence. By filtering on ‘Transactions’ on our site you will receive a list of the net contributions and the tax relief received over a period. Please note that cash contributions received from an external source have a transaction type of ‘SIPP top up’ and those contributions that have been paid by a transfer from a different account, i.e. your GIA, have a transaction type of ‘Portfolio transfer’. Please note though that ‘Portfolio transfer’ will also include transfer within your SIPP portfolios so you may need to highlight the relevant payments when presenting the information to HMRC.

It’s also worth noting that if you add more to your pension AFTER you’ve spoken to HMRC, you’ll need to get in touch again to let them know.

We are currently looking into the creation of a SIPP contribution report however, please note, that in the majority of additional relief applications, you are not required to submit evidence of the contributions paid.

If you made pension contributions in previous years but didn’t claim your additional tax relief you can backdate pension contributions for up to the last four tax years. Claiming tax relief on pension contributions for previous years works in the same methods described above.

Cash held within your SIPP is typically considered part of your pension 'wrapper'. The term 'pension wrapper' refers to the tax‑efficient environment in which your pension savings and investments are held.

The 'wrapper' includes all the assets held within the SIPP. This can encompass cash and securities, specifically ETFs in the case of InvestEngine SIPPs.

It’s important to note that while cash held within your SIPP is part of the pension wrapper the funds held as cash are uninvested and do not generate investment returns on their own or pay out interest.

Clients must consider the access age of SIPPs, which currently is 55 years of age (rising to 57 in 2028), and also the flexibility of being to access draw downs from their SIPPs. While a SIPP does offer flexibility, it is designed primarily for retirement savings, so early withdrawals may not be in your best interest, and there may be penalties or tax consequences for doing so.

Clients can seek advice from a financial advisor or tax professional to make sure they make the best decision regarding their SIPP.

InvestEngine does not offer tax or Investment advisory services. All clients are reminded to do their own due diligence or seek financial advice before making any investments with us.

We are looking at exactly how we can support employer contributions to our SIPP accounts and it is one of our top priorities for the coming months. We’ll be in touch with more information soon.

Simple answer is no, you do not need to invest the cash held in your SIPP.

In a Self‑Invested Personal Pension (SIPP), you have the option to hold your pension funds in cash. Cash within a SIPP is essentially uninvested funds that are held in a cash account within your SIPP, however clients must be aware it doesn’t earn interest or investment returns in itself, but it provides flexibility for future investment decisions.

If you are using a DIY portfolio within your SIPP and have the Autoinvest feature turned off, the cash balance will remain uninvested until you place your orders, or use either the Autoinvest or Rebalance feature.

On the other hand, a Managed Portfolio within your SIPP will work the same as with all our managed accounts: your cash monies will be invested in the next available trading window.

At this time, moving funds or assets from your General Investment Account into your SIPP account is not available.

Our team are working hard on providing this functionality and investors can expect this to be ready in the coming months. 

Please keep your eye on our Community and blog for updates in the meantime.

If you wish to change between DIY and Managed, you will need to create a new portfolio and initiate a transfer of funds from your old portfolio.

To create a Managed Portfolio you will need to go to your dashboard and select ‘Add new portfolio’‑> ‘Create Managed Portfolio’‑> ‘SIPP’‑> 'Continue'‑> select ETF (s)‑>'Add to portfolio'‑> 'Continue'‑> Set portfolio weights‑> 'Review and continue'‑>'Save and continue'‑>Read and agree to the SIPP declaration‑> 'Continue'

We are working on releasing in‑species transfers for internal portfolios, please keep an eye our on our Community page for the latest updates on this.

Please note: Withdrawing funds from one portfolio and depositing them into another via your bank account may result in you losing part or all of your SIPP annual allowance. Please make sure to transfer your funds internally as described here. 

Yes, clients can have more than one SIPP with InvestEngine. All your SIPP portfolios will fall under the same 'tax‑wrapper' allowed to individual investors.

You can combine multiple DIY and Managed Portfolios with your InvestEngine SIPPs tax wrapper. There is no maximum number of SIPP portfolios you can have on our platform.

Clients should keep thorough records and consult with a financial advisor to ensure that their investment strategy aligns with their overall financial goals and that they are compliant with pension regulations and tax rules in the UK.

Absolutely, clients can transfer their SIPP away from InvestEngine. To do this, please contact the new provider and follow their process.

In order to initiate the transfer, you may need the following bank details of InvestEngine: 

Account name: InvestEngine

Sort code: 60 – 40 – 05

Account number: 38385430

Reference number: your account reference number can be found by clicking on the Profile Icon at the top of your Dashboard. It is a number starting with ‘IC’ followed by 8 numbers. 

Your InvestEngine Portfolio reference number can be found at the bottom of the Options pop‑up screen on your portfolio page. It starts with ‘IP’ followed by 8 digits.