A self-invested personal pension, or a “SIPP”, is a type of investment product that helps you build your savings for retirement. Notably, a SIPP gives you much more flexibility with the investments you can select when compared to typical personal pensions.
Once you invest money into a SIPP it will be locked up until you turn 55. You can then start drawing funds, even if you haven’t stopped working. You can withdraw up to 25% of your fund as a tax-free lump sum with the remainder used to provide an income.
For a full overview on self invested personal pensions you can check our 'What is a SIPP' guide.
You can invest in a wide range of investment assets, from listed shares to ETFs and trusts with your Freetrade SIPP account. We’ve got a full list of stocks and shares available on our platform that we update regularly.
Yes. You are able to transfer old pension pots (maybe some you forgot about!) into your Freetrade SIPP.
Contributions are capped at 100% of your annual income. You’re also able to claim tax relief on the first £40,000 you contribute each year.
No, transfers don’t use up your annual allowance. You should be aware, though, that some providers may charge exit fees or other surcharges in order to transfer - check all SIPP charges.
We are not allowing this to start with, but hope to in the future.
We claim the 'Basic Rate' tax relief on behalf of the customer and deposit it in their Freetrade SIPP account for them automatically. It normally takes around 6-11 weeks from the top-up to the money entering their account.
You can transfer the below types of pensions to a Freetrade SIPP:
- Individual Personal Pension (IPP)
- Stakeholder Pension Plan (SHP)
- Free Standing Additional Voluntary Contributions (FSAVC)
- Contract-Based Workplace Pension Plan*
- Trust-Based Workplace Pension Plan*
- Subject to current plan rules. Some workplace pension plans cannot be transferred whilst still active.
Currently, we are unable to accept Final Salary Personal Pension, Defined Benefit Pension Plan or any pensions that contain Safeguarded Benefits including Protected Tax-Free Cash (PTFC), Protected Retirement Ages (PRA), Guaranteed Annuity Rates (GARs) or Guaranteed Minimum Pensions (GMP).
There is no limit on how many pensions someone can have (e.g. NHS pension and a Freetrade SIPP), but clients should be aware of their own circumstances. Check more details on how to transfer your pension to Freetrade.