Take control of your Personal Pension

A Self-Invested Personal Pension (SIPP) is a type of account that allows you to save for retirement in a tax-efficient and flexible way.

With a SIPP you can add money to your pension pot as often as you like, and claim additional income tax relief from HMRC as an incentive from the UK government.

Any money you pay into your SIPP, is free from capital gains tax, with the benefits you receive subject to UK pensions legislation. This includes limits on contributions that can qualify for tax relief, the age at which you can draw benefits, and any limits on the benefits that can be claimed without incurring tax penalties (including the amount that can be taken as tax-free cash).

You can use a SIPP to combine all your old pensions into one handy app, and start to draw money from the age of 55 (rising to 57 in 2028).

A Plum SIPP is just one part of the overall Plum platform, which can help you save more money, lower household bills, manage your budget and invest simply.

The Plum SIPP is available free of subscription charges (i.e. you do not have to subscribe to one of our paid tiers, either Plum Plus or Plum Pro).

However there are other fees to consider:

1. Product provider fee: 0.45% per year. This fee is charged annually, billed monthly and automatically reflected in your SIPP account balance.
2. Fund management fee: an average annual fee of 0.25%, depending on the fund(s) you choose for your SIPP. Although each fund manager will charge a slightly different fee for this service, this is always expressed as a percentage of the amount you hold in that fund. This is automatically deducted from the total value of the fund.

See the management fees by fund here.

Yes! Any contributions you make to a SIPP are eligible for UK income tax relief, up to a certain threshold.

The maximum amount of tax relief you can claim on the money you pay into your SIPP is based on your earnings and how much tax you pay. You can generally contribute up to 100% of your earnings, with an ‘annual allowance’ for tax relief up to £40,000 per tax year.

The Scheme Administrator then claims the income tax paid (at the basic rate) back from HMRC, and will invest this directly into your pension plan. For example, a contribution of £10,000 would only cost £8,000 from your take-home pay, because the Scheme Administrator reclaims the additional £2,000 (based on income tax at a basic rate of 20%).

If you pay income tax at a higher rate, you can still claim extra tax relief through your self-assessment tax return on your personal contributions.

You can use the link below to see an estimation of the effect that fees/charges, time and performance can potentially have on the returns you receive from your SIPP.

Pension return calculator

Combining all your existing pensions into a single Plum SIPP account means you can manage all your retirement savings with a single app, whilst also having access to all the extra budgeting and saving features that Plum customers know and love.

The process is super easy, and can be completed within the app in a few simple steps:

1. Enter your personal information.
   If you need help finding a lost pension, you can use the UK Government pension finder.
   
2. Choose from a range of funds to decide where you’ll invest your pension. You can find more details on the available funds here.
3. Select your beneficiaries.
4. Add details of any existing pensions that you want to transfer to Plum (you can transfer multiple pensions at any time).
5. Review the legal documents and sign the transfer request.

A Plum SIPP has been designed to make saving and investing for your future as simple and as straightforward as possible.

When you transfer money to your pension you’ll be asked to choose from three types of investment funds: