Self-invested personal pension (SIPP).
Open a pension in minutes - tailored to you with expert management and low costs.
Open a pension in minutes - tailored to you with expert management and low costs.
Investments can go down in value as well as up, and you may get back less than you put in. See our full risk disclosure for details.
You’ll be invested in our new Guided Solution option that builds a portfolio around you, based on your age.
We’re able to offer low-cost fund fees, keeping your total pension costs low.
Bring old pension pots together in one place, or ask us to help Find, Check & Transfer old pensions for you.
Our Investment Team manages your portfolio, using a wide range of underlying funds, giving you a diversified portfolio optimised for your long-term retirement goals.
Benefit from up to 45% tax relief on your pension contributions. Plus, when you turn 55 (57 from 6 April 2028), withdraw up to 25% of your pension savings as a tax-free lump sum.
Your new pension will automatically be invested in our new Guided solution, expertly managed by the Moneyfarm team and based on your age. However, you always have the option to choose your own portfolio and risk level.
We’ve designed a Guided solution option that builds a portfolio around you, based on your age. Your pension adjusts itself as life changes. The risk level gradually shifts over time, allowing your investments to evolve as you approach retirement.
While you will automatically be put into our Guided solution, you always have the option to choose your own portfolio and risk level. All expertly managed by our award-winning, in-house team.
Whether you stay invested in the Guided solution or choose your own portfolio, you can also decide to move to a diversified portfolio with a mix of assets that meet environmental, social, and governance (ESG) sustainability requirements.
We’ve designed a Guided solution option that builds a portfolio around you, based on your age. Your pension adjusts itself as life changes. The risk level gradually shifts over time, allowing your investments to evolve as you approach retirement.
While you will automatically be put into our Guided solution, you always have the option to choose your own portfolio and risk level. All expertly managed by our award-winning, in-house team.
Whether you stay invested in the Guided solution or choose your own portfolio, you can also decide to move to a diversified portfolio with a mix of assets that meet environmental, social, and governance (ESG) sustainability requirements.
Management fees are charged on your invested amount. You’ll also incur average fund costs (around 0.12% per year).
Do it on your own or with help from one of our consultants. It’s up to you.
Start a pension in just a few minutes with our Guided solution
Decide how to fund your pension - set up contributions or transfer old pensions
Start your pension investing journey with our experts by your side.
A SIPP is a type of personal pension that allows you to contribute regularly or make lump-sum payments towards your retirement. Like other pensions, it benefits from government tax relief and long-term investment growth potential.
The key features of a SIPP include:
Your contributions are invested in financial markets, meaning the value of your pension can rise and fall over time. Because retirement is typically a long-term goal, investing allows your savings the opportunity to grow beyond what cash savings alone might achieve.
One of the main advantages of a pension is tax relief. When you contribute to a SIPP, the government adds basic rate tax relief to your contribution.
For example, if you contribute £80, the government adds £20, meaning £100 is invested into your pension. If you are a higher or additional rate taxpayer, you may be able to claim further tax relief through your tax return.
There are limits to how much you can contribute each tax year while receiving tax relief. The annual allowance applies, and your total contributions are usually capped at 100% of your earnings or the annual allowance (whichever is lower). If you do not have earnings, you can still contribute up to a set threshold and receive basic tax relief.
Tax rules can change, and eligibility depends on individual circumstances.
A SIPP may be appropriate if you:
It is important to remember that pension money is typically locked away until the minimum pension access age. If you need flexibility before retirement, other savings or investment accounts may be more appropriate for shorter-term goals.
Within a SIPP, your contributions are invested in assets such as shares, bonds, funds or diversified portfolios. Your returns depend on market performance.
Diversification plays a key role in pension investing. Spreading investments across different regions, sectors and asset classes can help manage risk and reduce exposure to any single market event.
Because retirement may be decades away, pensions are often invested with a long-term horizon in mind. However, as you approach retirement, your investment strategy may gradually shift to reflect changing priorities — for example, focusing more on capital preservation.
A professionally managed pension can help align your portfolio with your risk tolerance, retirement timeframe and income objectives.
Many people accumulate multiple pension pots throughout their careers. Bringing them together into a single SIPP can make retirement planning easier to manage and track.
Potential benefits of consolidation include:
Before transferring pensions, it’s important to check whether you would lose any valuable guarantees or benefits, and to ensure the transfer aligns with your long-term objectives.
You can usually start accessing your pension from age 55 (rising to 57 from 2028). When you do, you typically have several options:
The remaining 75% of withdrawals are usually subject to Income Tax at your marginal rate.
The flexibility available means you can tailor your retirement income strategy to suit your circumstances. However, careful planning is essential to ensure your pension lasts throughout retirement.
Time is one of the most powerful tools in retirement planning. The earlier you begin contributing to a pension, the longer your money has to benefit from compound growth and tax efficiency.
Even small, regular contributions can build significantly over decades. Starting early may also reduce the pressure to contribute large sums later in life.
If you are starting later, increasing contributions where possible and reviewing your retirement goals regularly can help keep your plans on track.
A SIPP combines tax efficiency, long-term growth potential and flexibility. While investments carry risk and pension values can go down as well as up, a disciplined and diversified strategy can help you work towards your retirement goals with confidence.
Retirement planning is not just about building a pot — it’s about creating future financial security and choice. By understanding how pension tax relief works, reviewing your existing arrangements and aligning your investments with your objectives, you can take meaningful steps towards a well-structured retirement plan.
As with all financial decisions, it’s important to ensure your pension strategy reflects your personal circumstances, long-term ambitions and appetite for risk.
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If you die after 75, anyone who inherits your pension will be taxed on any income received as earnings under normal Income Tax rules.
If you die before the age of 75, anyone who inherits your pension will receive the benefits tax-free – up to a limit of £1,073,100. This is the lump sum and death benefit allowance (LSDBA), which replaced the lifetime allowance (LTA) on 6 April 2024.
The lump sum and death benefit allowance (LSDBA) is £1,073,100.
This is the maximum tax-free lump sum that you and your beneficiaries (the person or people who get your pension after you die) can receive from your pension.
You or your beneficiaries generally won’t be affected by the LSDBA if the total value of your pensions (excluding the State Pension) is less than £1,073,100. This includes pension money you have and haven’t taken yet.
If your pension is higher than the LSDBA, you or your beneficiaries will usually pay tax on anything above the limit. Your pension provider would calculate this based on normal Income Tax rules.
The main exception is when a death benefit is being paid from a pension that was already accessed before 6 April 2024. In these cases, if you die under the age of 75, the whole amount is tax-free and doesn’t reduce your LSDBA, because it falls under the old lifetime allowance (LTA) rules.
The lump sum allowance (LSA) is £268,275.
You generally won’t be affected by the LSA if the total value of your pensions (excluding the State Pension) is less than £1,073,100. The LSA is 25% of this amount, meaning the tax-free limit is usually £268,275.
The amount of tax-free cash you can take from your pension is normally limited to a quarter of your total pensions. So, if 25% of your pensions adds up to more than the LSA of £268,275, you could receive less than 25% tax free.
The total value of your pensions includes both pensions you have and haven’t taken yet.
If your pensions’ value is over the allowance (or if it might be when you retire), you’ll pay tax on anything you take over the limit. Your pension provider will calculate this based on normal Income Tax rules.
This means the taxable money from your pension lump sum is added to any other taxable income (like a salary or other pension income). The total figure for that tax year is then used to work out how much tax you’ll pay.
There are three types of lump sum that don’t count towards the LSA. This means your allowance won’t reduce if:
Your allowance might be higher if you have, or apply for, lifetime allowance protection.
Whenever you take money from a pension, your pension provider will ask if you’ve ever accessed a pension before. This is so they know how much tax-free cash you’ve already taken.
For example, say you had three untouched pension pots worth £400,000, £800,000 and £80,000. If you took £100,000 tax-free cash from the first pot, your LSA of £268,275 would be reduced to £168,275.
This means you can only take this amount from the others before paying tax, rather than 25% of the money.
If you took some pensions before 6 April 2024, you might benefit from a transitional tax-free amount certificate.
At any time from age 55 (57 from April 2028), you can usually take up to 25% of your pension as a tax-free lump sum.
If you have a defined contribution (DC) pension, your entire pension can also be inherited tax-free if you die before the age of 75, in most cases.
You might still need to pay some tax, however, if the lump sums are over these allowances:
Lump sum and death benefit allowance (LSDBA): The limit on all tax-free lump sums from your pensions is £1,073,100.
If all your pensions added together are (or are on track to be) worth over £1 million, you may be taxed on anything over the amount you can take tax-free. This amount is set by the lump sum allowance (LSA) and lump sum and death benefit allowance (LSDBA), which are replacing the old lifetime allowance (LTA).
Standard Moneyfarm minimums apply – you’ll need at least £500 in your pension to transfer but we recommend at least £2,500 to benefit from full diversification.
Pension transfers vary by provider. Some providers are on an automated platform which takes an average of eight working days. Others take longer, and can take months. The team at Moneyfarm will chase your existing provider on your behalf and let you know if there are any issues.
When you create a pension portfolio with Moneyfarm you’ll be asked if you’d like to transfer a pension. All you need to do is fill in the fields and we’ll manage the transfer process on your behalf, free of charge. You’ll need to know your current pension provider, account number and estimated value - you’ll find all of these details on your latest pension statement.
If you die before the age of 75, the value of your pension can be paid to your beneficiaries in the form of a lump sum or as income. The benefits will normally be tax-free, as long as they are paid (or, in the case of the payment of pension income, designated for that purpose) within two years of your death. If you die after reaching 75, the value of your pension can still be passed to your beneficiaries, but will be subject to income tax at the rate your beneficiary pays tax.
You can use all or part of your pension to purchase an annuity with another provider at the point of retirement. The amount of income and level of benefits you receive will depend on the annuity rate offered to you by the annuity provider you choose at the time. Annuity rates fluctuate and may be higher or lower in the future. If you have any questions, contact a financial advisor.
You can usually take 25% of your total pension pot as a tax-free lump sum from the age of 55 (this is set to change to 57 on 6 April 2028). The remainder can be used to provide you with an income throughout retirement - typically through an annuity or income drawdown - and will be subject to income tax depending on its value and your other taxable income. You may end up paying a lower rate of tax when you retire as your income reduces. For example, you may pay 40% tax when working, but just 20% when you retire. Remember, there are generous tax advantages to saving into a personal pension, you can find out more on our pension page. It is also important to check your existing pensions before you transfer them as some pensions may have a benefit called ‘Protected tax-free cash’ where you may be able to withdraw more than 25% tax free. Please see our Key considerations page for more info.
The lifetime allowance (LTA) was the maximum amount you could draw from pensions (workplace or personal) in your lifetime without paying extra tax. This figure was £1,073,100, but the charge for exceeding the LTA had been removed from 6 April 2023, with the allowance abolished entirely from April 2024. This means that in the future you can save as much you want into a pension without incurring a tax charge. The rate of the tax you paid on pension savings above the lifetime allowance depended on how the money was paid to you and when you took your pension savings.
If you took your pension before 6 April 2023, the rate was:
55% if paid t as a lump sum
25% if paid t any other way, for example pension payments or cash withdrawals
If you took your pension on or after 6 April 2023, there is no lifetime allowance charge
You can transfer money from your other pensions into your Moneyfarm Pension, including from SIPPs and workplace pension schemes, so long as you haven’t started to take income from them.
You won’t be able to transfer defined benefit schemes, also known as final salary schemes, you also won’t be able to transfer existing workplace pension schemes where your employer is currently contributing.
Your pension savings are initially transferred as cash, and then reinvested once the money arrives in your Moneyfarm Pension. You may lose certain benefits or incur exit fees if you leave your current provider, and there is no guarantee that the benefits you receive from your Moneyfarm Pension will be more favourable, and they may be lower.
It is important you understand any changes in guarantees or benefits and the fees your current provider may charge before transferring your existing pensions to the Moneyfarm Pension. For more information please see our Key Considerations page. Moneyfarm won’t charge you a fee for transferring your pension.
Yes you can, as a self employed person you have the same tax allowances as an employed person. If you are an employee of your own company, you may be able to make employer contributions into your personal pension. You can speak to the investment adviser team for more details, and we recommend for tax queries in respect of pension contributions and your business, you speak to a qualified advisor , accountant or to the Department for Work & Pensions.
Yes, for most people this will be possible. You can register your employer by filling out the attached form and returning it to support@moneyfarm.com to start the process. Please contact our investment adviser team if you want to know more.
There’s a cap on how much you can contribute to your pension to receive tax relief each year. In the 2024/25 tax year, this limit is £60,000 or your annual salary – whichever is lower. The government applies a tax charge, called the annual allowance tax charge, if the total contributions to your pension savings for a given tax year exceed your annual allowance. Your ‘total contributions’ includes all your personal contributions, any income tax relief from the government and contributions paid by your employer. The charge for exceeding your annual allowance is set at your marginal rate of income tax. This acts as if the excess amount were added to your other earnings. Before you start withdrawing from your pension savings, you can usually carry forward up to three years of unused allowance. This increases your available allowance. Once you start taking income benefits from your pension savings, you will normally be subject to what’s called the Money Purchase Annual Allowance restricting the level of your contributions to “money purchase” pensions, including your Moneyfarm Pension. If you are unsure of your annual allowance we recommend you seek professional advice.
When it comes to saving for your future, the more you can put aside the better to ensure your financial security. It all depends on the standard of living you're expecting when you retire. Visit our Pension Calculator and Decodes blog to find out what this means for you.
A Self Invested Personal Pension (SIPP) is a personal pension scheme that helps you accumulate a sum of money to provide you with an income throughout retirement. You may be eligible for tax benefits when you contribute to a pension, whilst your money is invested, and when you retire.
You can claim tax relief on your personal pension contributions relative to your income tax band - in simple terms, this means for a basic tax rate payer for every £100 you put into your pension you will automatically receive an additional £25 from the government. If you are a higher rate tax payer, you will get the £25 automatically, but can also claim for the additional tax relief (relative to your income tax band) in your self assessment. The investments in your pension will grow free from income tax and can be sold without incurring a Capital Gains Tax charge. You can usually take 25% of your total pension pot as a tax-free lump sum from the age of 55 (this is set to change to 57 on 6 April 2028), and the remainder will be taxed according to your income tax band.
Once you’ve started to save into your pension, you will normally have to wait until you’re 55 before you can draw any money from it. You can then decide whether to go into income drawdown, buy an annuity with your savings, or do a combination of the two.
A Self Invested Personal Pension (SIPP) is a personal pension scheme that helps you accumulate a sum of money to provide you with an income throughout retirement. Fortunately, the government wants you to save for retirement, so there are a number of tax benefits available to you (see question 15 above for more detail).
You save into a pension so that you have an income when you retire. This depends on the value of your savings when you retire, which in turn depends on how much you put in and how your investments perform.
The Moneyfarm Pension helps you save for retirement in a tax-efficient way. When you invest in a Moneyfarm Pension you'll be invested in the portfolio that best reflects your needs.
Yes, we can accept crystallised pension transfers. However, they must be transferred in full, as we can't accept partial transfers.
We can accept the transfer of any defined contribution pension, provided they hold no guarantees. We can’t accept the transfer of final salary (defined benefit) pensions. If you have already started to take benefits from your pension, it must be transferred in full, as we can't accept a partial transfer.
