A Self-Invested Personal Pension (SIPP) is a tax-efficient ‘wrapper’ to help your savings grow for the future. It has all the same tax benefits as a standard personal pension but offers additional flexibility over the investments you can choose and the benefits payable at retirement, as well as passing on the funds when you are no longer here.
This additional freedom allows you or an authorised financial adviser or investment manager, to choose and manage your own investments and make changes as often as you like. It can open up a wider range of investment options and types of assets, though this may vary from one provider to another.
See below for more information on who they are suitable for and how much you can contribute.
What are the benefits of a Killik & Co SIPP?
Whether you prefer to manage your own investments or have an Adviser manage them for you, our SIPP gives you greater control of your pension, with expert advice every step of the way. Contributing to a SIPP as part of your pension planning strategy allows you to benefit from significant tax relief as you build your investment portfolio.
In addition to the opportunity to take advantage of a £60,000 annual allowance for tax-efficient investing (if you are a UK taxpayer), a Killik & Co SIPP provides the following benefits:
A dedicated Investment Manager to manage or guide your investment strategy
A range of different investment approaches to balance investment risk and return
Access to invest in over 30 markets worldwide
No minimum investment requirement
No cost from Killik & Co to open or transfer from another pension
Our SIPP offers flexibility around benefits payable during your retirement and how your family and other beneficiaries can inherit the fund on death. And if you choose our Wealth Planning Service, we can also review your entire financial position, including other pensions and investments, offer pensions advice, tax-efficient structuring across all investments and tax-wrappers, and produce a personal financial plan, complete with your own lifetime cash flow model.
Capital at Risk
Past performance is not an indicator of future returns please remember as with all investments your money can rise and fall.
Award-winning SIPPs
We are proud to have been awarded the “best full SIPP provider” for several years running, achieving consistent recognition from clients and industry bodies for delivering exceptional investment services.
Investors Chronicle & Financial Times
Selective SIPP Provider
5* Winner 2024
Investors Chronicle & Financial Times
Best Full SIPP Provider
Winner 2023
Investors Chronicle & Financial Times
Best Full SIPP Provider
Winner 2022
Investors Chronicle & Financial Times
Investor Champion - Pension Drawdown
Winner 2021
Investors Chronicle & Financial Times
Full SIPP Provider
Top Rated (2020)
Past performance is not an indicator of future results
Choose from an Advised or Managed SIPP
We offer both Advised and Managed SIPPs so we can tailor the most suitable solution for your needs. Experienced investors often prefer our Advised SIPP, while newer investors or those without sufficient time to manage their portfolios tend to find our Managed SIPP more suitable. Here are more details about the services we offer our Advised and Managed clients:
What our Advised SIPP offers
Your dedicated Investment Manager will help you manage your SIPP investments
You will be able to select from a wide range of investments
Your dedicated Investment Manager will be contactable to discuss investment ideas and strategies via phone, email or in-person meetings
You will be invited to attend an annual portfolio review and receive quarterly statements
You will gain access to Killik & Co’s independent research and market commentary
What our Managed SIPP offers
Your dedicated Investment Manager will manage your SIPP investments for you
You will be able to benefit from a well-diversified investment portfolio
Your dedicated Investment Manager will be contactable via phone, email or in-person
You will be invited to attend an annual portfolio review and receive quarterly statements
You will gain access to Killik & Co’s market commentary and educational content
How does a SIPP work?
A SIPP allows investors to make extra contributions, over and above a workplace pension. It can also be used to consolidate old pensions that do not offer suitable benefits or investment options. Clients with a SIPP account or wrapper can invest in a huge range of investments, including:
Gilts and other fixed income instruments, such as corporate bonds
Collective investments such as unit trusts and investment trusts or OEICs
Equities
Cash
Other investments, such as direct investment in commercial property, may be acceptable subject to meeting our criteria.
Contributing to a SIPP can help supplement existing pension savings, and be especially useful if you have identified a shortfall in the funds you expect to receive from other pension types.
Choosing a SIPP over another type of pension will usually be driven by a desire to have greater control over the investment strategy and influence towards the investment performance. A SIPP offers several key benefits compared to a workplace pension or State Pension.
SIPP
Workplace pension
State Pension
How it works
You or your Adviser decide which investments to buy for your portfolio, across a wide range of asset types
You and your employer contribute a fixed amount into your pension via payroll
The state pays you a fixed amount if you are eligible (linked to the number of years of NI contributions you have made)
The allowance
As much as you would like to invest, up to the pension annual allowance (aiming to mitigate tax, where possible)
When enrolled, you receive a minimum contribution of 8% of your gross salary (you contribute 5% and your employer 3%), up to the pension annual allowance
Full control of your pension and contribution amounts, improved flexibility around the payment of the pension and death benefits, wide range of investments to choose from
Contributions from both you and your employer and any benefits specific to your workplace scheme, pension funds invested in a range of assets
Available to claim from age 66 and can help to cover living costs if you are on a low income
Cons
More input required to manage your pension and select suitable investments
You have a limited number of investments to choose from and your contributions may end if you leave the workplace
The allowance is relatively low and the State Pension is taxable (so it may push you into a higher tax band)
Further considerations
Unsure if your pension funds will be sufficient for your retirement? Our Wealth Planning Service can help you identify how much you need to save to retire comfortably.
Who is a SIPP suitable for?
SIPPs could be suitable for anyone looking to make pension contributions or consolidate existing pensions in one place. There are no age limits for starting a SIPP and they are available to anyone in the UK. However, tax relief on personal contributions is only available until age 75.
In the first instance, it usually makes sense to join a workplace pension, as your employer will often contribute as well. These contributions are usually conditional on you remaining in the workplace pension so not joining could mean that you miss out. There may be other benefits too, and with employers being free to offer different workplace pensions and benefits, it is important to research these or to take professional advice.
Pension Transfers
Pension transfers can be complex and for some types of pensions, in particular those with guaranteed benefits, such as defined benefit schemes and any other pensions with safeguarded benefits, you might wish, or be required, to take regulated advice about your options.
Awards & Testimonials
James Dunn
Partner, Head of Investment Managers
"Through his extensive knowledge and experience, he is able to advise and guide in all investment and savings matters, and explain clearly to someone with little knowledge in these matters."
Alison, East Sussex
Bronwen Horton
Senior Wealth Planner
"I have worked with Bronwen for over two years, and I could not have had a better person to help me with Wealth Planning. Knowledgeable, efficient, empathetic and an extremely effective communicator - with a good sense of humour. Investment help and advice, especially for busy working women, is so important and Bronwen has given me that advice in spades."
Penny Noble
Jonathan Drysch
Partner, Associate Planning Director
"In recent years, my family have needed a comprehensive understanding of our complicated financial landscape. We wanted to optimise returns on our savings and formulate a robust plan for retirement and provide financial support to the wider family. Jonathan and his dedicated team have played a pivotal role in bringing a conclusive end to this journey, offering invaluable insights and strategic solutions. We extend our sincere gratitude and anticipate a valued partnership for the future."
Client of Jonathan Drysch
Paul Martin
Partner, Esher Branch Manager
"Taking time to really understand my requirements now and later in life, my approach to risk, and the lifestyle I hope to maintain. Paul explains the markets and his investment decision in layman's terms which inspires confidence in his advice."
Lisa, London
William Stevens
Partner, Head of Financial Planning
“The advice and perspective received from the entire team at Killik & Co during the planning process has been exceptional. I have much greater clarity and a renewed sense of confidence in my financial future and retirement thanks to their efforts.”
Wealth Planning Client
Emma Tuckett
Investment Manager
"A personal, polite, informative and most importantly, considerate approach to someone who is naturally hesitant and anxious."
Helen
Investors Chronicle & Financial Times
Wealth Manager
5* Winner
Investors Chronicle & Financial Times
Selective ISA Provider
5* Winner
Investors Chronicle & Financial Times
Selective SIPP Provider
5* Winner
Past performance is not an indicator of future results
SIPP rules, contribution allowances and limits
The annual allowance for pension contributions in the current tax year (2023/24) is £60,000 (gross). It covers contributions paid to all pension schemes for you during the tax year and includes third parties, such as employer contributions.
However, the allowance could be substantially lower where you have a high income or flexibly accessed pension benefits. Contributions may be further restricted where you do not have sufficient earnings to qualify for tax relief. While these can be complex areas, the main points to be aware of are:
If your annual income is more than £200,000 for the tax year, you may be subject to the tapered Annual Allowance. The calculations can be complex but anyone who is fully subject to the taper has a reduced Annual Allowance of £10,000.
If you take an income under the pension freedoms legislation introduced in 2015, your Annual Allowance is permanently reduced to £10,000. This is called the Money Purchase Annual Allowance.
Tax relief on personal contributions is restricted to your relevant earnings where these are below your unused allowance.
If you do not have any earnings, you are limited to contributions of £3,600 every tax year.
The total contribution, including tax relief an individual can make, will generally depend on a number of factors. As we move forward under the new legislation, higher earners in particular, should ensure that they receive the appropriate advice that will allow them to maximise the amount of tax relief that they receive.
Some individuals may also be able to carry forward unused annual allowances from the previous 3 tax years*
In the Autumn Budget 2024, it was announced that from 6 April 2027 most unused pension funds and death benefits will be included within the estate for Inheritance Tax purposes. This could mean that pension scheme administrators will pay any Inheritance Tax due (up to 40%) prior to paying death benefits. Legislation is yet to be drafted for this change.
Under current legislation, if you die before age 75, your SIPP and any investments held within it can usually be passed onto your beneficiaries when you die, tax-free. If you die past age 75, your beneficiaries pay income tax when they withdraw funds from the pension.
A Killik & Co SIPP is held within a discretionary trust and normally should not form part of your death estate. This means that it is exempt from Inheritance Tax (IHT), unlike many other assets, which can offer a significant tax saving for your beneficiaries. However, we recommend seeking financial advice before making any wealth transfer arrangements, as pension legislation is complex, and some arrangements could create more tax for you and the recipient.
Can I open a SIPP after retirement?
Yes, you can open a SIPP after retirement. However, you should be aware that tax relief on personal contributions is only available until age 75.
How do I transfer my existing pension to a SIPP?
Transferring your existing pension into a Killik & Co SIPP is simple. To process a transfer, we will ask you to provide details about your pension and employment history so we can take care of most of the work for you. Our clients often choose to work with a Wealth Planner when making a pension transfer to ensure all of their finances and investments are arranged tax-efficiently.
Can I open a SIPP for my child?
Yes, you can open a SIPP for your child. A Junior SIPP allows a parent or guardian of any child who is a UK resident under 18 to contribute up to £3,600 per tax year into a pension for them.
Can I have a SIPP and a workplace pension?
Yes, you can have both a SIPP and a workplace pension. A workplace pension enables you to benefit from employer contributions, and a SIPP provides access to a larger range of investment opportunities, which could help you to grow your pension pot faster.
How much does a Killik & Co SIPP cost?
There is no cost to open a Killik & Co SIPP or transfer across an existing pension (although it is worth checking there are no exit charges from the provider you are leaving). There are no charges for cash contributions including direct debits, however, given the flexibility and breadth of investment options with our SIPP, there are a range of other administration fees which may be applicable, which are detailed here in our SIPP rate card.
There will be fees in connection with the other services you select, such as for investment management and advice. Our Advisers can discuss these options with you and confirm the charges you can expect.
How and when can I access my SIPP funds?
You can start to access money from your pension pot from age 55, rising to 57 in 2028 but there are a variety of options available to you.
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