A SIPP is a self-invested personal pension. It's a pension pot you build yourself to live off in retirement. Unlike other types of personal pension, a SIPP gives you much more flexibility when it comes to what you can invest in.
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To find out more about SIPPs and how they can help you save for retirement, check out our SIPPs explained jargon-free guide.

You can transfer the below types of pensions to a Freetrade SIPP:
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• 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).
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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.

Your SIPP is included as part of the Plus plan, which gives you access to everything Freetrade has to offer. Invest in the full range of 6,000 stocks and ETFs, use limit orders and stop losses to stay in control of your trading and earn 3% interest on uninvested cash up to £4,000. Your Plus plan also includes a tax-efficient stocks and shares ISA.

Yes. You can transfer other personal pensions to the Freetrade SIPP. Transfers from defined benefit pension schemes and schemes that provide safeguarded benefits are not accepted.

Before transferring your pension to Freetrade, make sure it is the right action for you to take. Please ensure that you will not lose valuable guarantees or incur excessive transfer penalties.

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.

No, currently we don't accept employer contributions, but we 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.

Yes, you are able to move cash from your stocks and shares ISA or general investment account (GIA) directly into your Freetrade SIPP.

To close your Plus plan or downgrade to a Standard plan, you’ll have to transfer your SIPP to another provider first. This is because SIPPs are a bit different to other investment accounts and operate under slightly different rules.

You can only cancel or close a SIPP within the first 30 days of opening it. After this point your SIPP cannot be closed and the pot of money you’ve built up will be preserved until you reach the age at which you’re allowed to access your pension (currently 55).

To cancel within the first 30 days of opening your Plus plan, let us know through the in-app chat within the 30 day cancellation period. When you cancel within the first 30 days we will refund any account fees taken.

For more information take a look at SIPP key features.

The first thing to know is that a SIPP or self-invested personal pension is a type of personal pension. They are both pension pots that you build yourself.

The key thing to know about a SIPP is that it tends to offer investors a wider choice of investment options. Other types of personal pensions, such as personal and stakeholder pensions, tend to have restricted invested options.
For more details on how pensions work in the UK, check our guide on what pensions are.

You normally need to be at least age 55 to access money in a pension fund.

If you want to take money from your Freetrade SIPP, please contact our Customer Service team in-app and they will send you a Retirement Options Pack.

At present, Freetrade only offers “uncrystallised funds pension lump sums” (UFPLS) payments, but there are other options available that you can consider when deciding how to access your pension fund.

We have to tell you about your options before we can start processing your request as it’s important that you consider which option is right for your personal circumstances. The Retirement Options Pack will help you understand your options, but if you’re not sure, please take advice from a suitably qualified financial adviser.

If you then decide to access funds from your pension plan using UFPLS, you can ask us to send you an application form and risk warning questionnaire.

An “uncrystallised funds pension lump sum”(UFPLS) or lump sum payment is one way of withdrawing money from a pension.

You take cash from your pension fund as and when you need it and leave the rest invested, where it can continue to grow tax-free.

Normally the first 25% of each UFPLS payment is tax-free and the rest is taxed as income.

If you take money from your pension fund using UFPLS, the amount you can pay into your pensions and get tax relief on in the future is restricted. If you want to carry on saving into a pension, this option may not be suitable.

Before you withdraw money from your pension fund using UFPLS, you should think about whether it’s right for your personal circumstances, including the tax impact of taking UFPLS payments. If you’re not sure, please take advice from a suitably qualified financial adviser.

Yes.

You can use both drawdown and UFPLS to take benefits from just some of your pension fund or from all of your pension at once.

With UFPLS you take money out of your pension as a lump sum payment 25% of which is normally tax free and 75% taxable. With drawdown you can normally take up to a quarter (25%) of the money in your pension fund as a tax-free lump sum. The rest is moved to a drawdown pension fund, where it is available to provide taxed income. You can start taking your income straight away or wait until a later date and take your income at times to suit you.

If you take money from your pension fund using UFPLS, the amount you can pay into your pensions and get tax relief on in the future is restricted. With drawdown the same restrictions apply, but only once you have taken taxable income (not the tax-free cash) from your pension.

Please note, currently there is no option to take benefits as drawdown from your Freetrade SIPP and you would need to transfer some or all of your pension fund to another pension plan in order to take your pension benefits using drawdown.

If you want to take a lump sum from a pension that you haven’t accessed previously, you can contact customer service in-app who will send you an application form. Please note you normally need to be at least age 55 to request this.

Before you take UFPLS, you should consider whether it’s right for your personal circumstances. If you’re not sure, please consult an independent financial adviser first. By withdrawing money in this way, you may limit valuable tax benefits from your pension in the future.

At present, Freetrade only offers uncrystallised funds pension lump sums (UFPLS), but other options are available to consider when deciding how to access your pension funds.
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- Use your pension fund to get a guaranteed income for life, also known as a lifetime annuity. The income is taxable, but you can choose to take up to 25% of your fund as a one-off tax-free lump sum at the outset.

- Use your pension fund to provide a flexible retirement income (flexi-access drawdown). Normally you can choose to take up to 25% of your fund as a one-off tax-free lump sum. The rest of your fund is then held in your pension plan to draw out as taxed income as and when you like and whatever amount you like, including setting up regular payments, until it has all gone. You still have the option to get a lifetime annuity with the remaining pension fund at any time.

- Take a lump sum. You can take a lump sum from your pension fund when you like for any amount you like. Normally the first 25% of each lump sum payment will be tax-free and the rest will be taxed.

- Mix your options. Choose any combination of the above, at the same time or at different times, using different parts of your pension fund./
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Currently you will have to transfer your Freetrade pension fund to another provider if you want to take money from your pension as an income (drawdown) or to convert it to an annuity.

Before you withdraw money from your pension fund using UFPLS, you should think about whether it’s right for your personal circumstances, including the tax impact of taking UFPLS payments. If you’re not sure, please take advice from a suitably qualified financial adviser.

Each UFPLS withdrawal from your Freetrade SIPP will cost £240.