How a Self-Invested Personal Pension (SIPP) works
A SIPP gives you full control over your investment portfolio, allowing you to invest in individual shares, ETFs, investment trusts, and commercial property.
Contributions receive 20% basic rate tax relief automatically (£80 paid becomes £100 in the SIPP). Higher rate (40%) and additional rate (45%) taxpayers claim extra relief via Self Assessment.
Worked example: SIPP accumulation and tax relief
Contributing £400 net per month into a SIPP triggers £100 in basic rate tax relief, resulting in £500 invested monthly (£6,000/yr). Over 25 years at 5.5% annual growth, the SIPP grows to approximately £350,000, providing £87,500 in tax-free cash at age 57.
Inputs for the sipp calculator
Net Contribution & Age
Enter the net cash you pay each month and your target retirement age.
CALCULATOR QUESTIONS
UK SIPP calculator questions
What is the SIPP contribution limit?
You can contribute up to 100% of your relevant UK earnings, up to the statutory £60,000 Annual Allowance.
Can non-earners open a SIPP in the UK?
Yes, individuals with no UK earnings can contribute up to £2,880 net per year, and the government tops it up to £3,600 gross.