A Self-Invested Personal Pension (SIPP) is different to a traditional pension. SIPPs work much the same way as other personal pensions but with a greater range of investment giving you more choice in how you invest your money. You add money to your pension as and when you like. The government pays in an extra 20%* in pension tax relief. If you pay a higher rate of tax, you’ll usually be able to claim back even more with your tax return. Investments go down in value as well as up so you could get back less than you invest.

Should you die before retirement, the remaining value of your pension (SIPP) can be passed on to your nominated beneficiaries. The death benefits can be passed on to your loved ones, often tax free or paid as a pension to provide an income and benefit from leaving the money invested.