SIPP Self Invested Personal Pension

A type of personal pension which allows the individual much greater flexibility and control than a conventional pension in terms of the type of investments they hold. SIPPs still have all the tax advantages of other pensions with tax relief of up to 50% on contributions and no capital gains tax. SIPPs can be opened at any age – even on behalf of children - and individuals can transfer in their pension pots from other plans. An individual can choose to manage a SIPP themselves or appoint a fund manager or stock broker. However, the money cannot be drawn before the age of 55.

This definition is for general information purposes only