UK Investment Platform Comparison – SIPPs

A Self-Invested Personal Pension is a type of personal pension that gives you full control over your investments. Unlike workplace pensions where your employer (or their chosen provider) decides where contributions go, a SIPP lets you build your own portfolio from thousands of investments including funds, ETFs, investment trusts, and individual shares.

You can have a SIPP alongside a workplace pension – they’re not mutually exclusive. Many people contribute to their workplace scheme (to get the employer match) and a SIPP (for more investment control). Just remember all pension contributions count towards the same £60,000 annual allowance.

The trade-off for this control is that you’re responsible for your own investment decisions. There’s no default fund or target-date option on most execution-only platforms – you need to actively choose where your money goes. You need a bit of a plan, and a good idea of what you are doing!

Tax relief is the main reason pensions beat ISAs for long-term retirement savings. When you contribute to a SIPP, the government adds money on top, effectively giving you back the tax you’ve paid on that income.

How it works in practice: You pay £80 into your SIPP. Your provider claims 20% basic rate relief from HMRC, adding £20 to make a gross contribution of £100. If you’re a higher-rate taxpayer, you can claim another £20 back through Self Assessment, meaning that £100 pension contribution only cost you £60. (See current income tax rates.)

Scottish taxpayers have different Scottish income tax bands (19%, 20%, 21%, 42%, 45%, and 48% for 2025/26), but SIPP tax relief still works at the 20% basic rate for automatic claims. Scottish higher-rate taxpayers can claim the difference through Self Assessment.

Unlike ISAs with their fixed £20,000 annual limit, pension allowances are more generous but also more complex. The key limits for 2025/26 are (see GOV.UK pension scheme rates):

High Earners: Tapered Annual Allowance

If your “adjusted income” exceeds £260,000, your annual allowance tapers down to a minimum of £10,000. This only kicks in when your “threshold income” also exceeds £200,000. The calculations are complex – if you’re in this territory, you’ll want professional advice.

Carry Forward

Didn’t use your full allowance in previous years? You can carry forward unused allowance from the past three tax years, potentially contributing well over £60,000 in a single year. You must have been a member of a registered pension scheme in those years, and you must use the current year’s allowance first.

The normal minimum pension age (NMPA) – the earliest you can access your private pension without special circumstances – is currently 55. But this is rising to 57 from 6 April 2028.

If you were born between 6 April 1971 and 5 April 1973, you’re in a transitional window – you can still access at 55, but only if you do so before 6 April 2028. After that date, you’d need to wait until 57.

The change aligns with the increase in State Pension age to 67. The government intends to keep a 10-year gap between minimum pension age and State Pension age, so expect further increases if State Pension age rises again. See MoneyHelper’s guide for more details.

Protected Pension Ages

Some people have a “protected pension age” allowing access before 57. This mainly applies to certain occupations (firefighters, police, armed forces, some professional sports) or if your pension scheme rules already gave you a right to access at 55 before the rule change was announced in November 2021.

When you reach minimum pension age, you don’t have to do anything – your SIPP can stay invested indefinitely. But when you do decide to access your pension, you have several options under the pension freedoms introduced in 2015.

With most options, you can take up to 25% of your pension tax-free. The maximum tax-free amount across all your pensions is £268,275 (the lump sum allowance).

The Pension Wise service offers free, impartial guidance for over-50s – it’s worth booking an appointment before making any decisions.

If you’re aiming to retire before 57 (or 55 under current rules), pensions have a fundamental limitation: you can’t normally access them until you reach the minimum pension age. The only exceptions are ill health retirement (if you’re medically incapable of doing your job) or serious ill health (life expectancy under 12 months). There’s no general hardship withdrawal or early access option.

This means early retirees typically need a “bridge” – accessible investments to cover living costs from their target retirement age until their pension unlocks.

How Much Bridge Do You Need?

The basic calculation: years until pension access × annual spending. For example:

These figures are simplified – a bridge fund can stay invested during drawdown, potentially reducing the amount needed. They also don’t account for inflation or investment returns.

Where Can You Build Accessible Savings?

Unlike pensions, these accounts have no minimum access age:

• ISAs: £20,000/year contribution limit. Growth and withdrawals are tax-free. Commonly used for early retirement savings due to the tax advantages and flexibility.
• General Investment Account (GIA): No contribution limits. However, profits above the £3,000/year CGT allowance are taxable, as is dividend income above the £500 allowance.
• Cash (savings accounts, Premium Bonds): Lower returns but no investment risk. Interest on savings accounts is taxable above the Personal Savings Allowance (£1,000 for basic rate, £500 for higher rate taxpayers). Some people hold 1-2 years of expenses in cash as a buffer against market downturns.

Balancing Pensions and Accessible Savings

Pensions offer tax relief that ISAs and GIAs don’t – basic rate taxpayers get a 20% government top-up, higher rate taxpayers can claim 40% total relief. But that money is locked until minimum pension age.

The trade-off depends on your target retirement age. Someone planning to retire at 60 has a shorter bridge to fund than someone retiring at 45. The right balance between pension contributions and accessible savings will vary based on individual circumstances – this is an area where professional financial advice can be valuable.

SIPPs and workplace pensions have different features. Here’s how they compare:

Key Considerations

• Employer matching: Workplace pensions often include employer contributions that match or exceed your own. This isn’t available with a SIPP unless your employer specifically agrees to contribute.
• Fees and fund choice: Workplace pensions may have limited investment options or higher fees than some SIPPs. Alternatively, employer-subsidised schemes can be cheaper than paying SIPP platform fees yourself.
• Old pension pots: Pensions from previous employers can be transferred to a SIPP for consolidation, though transferring an active workplace pension means losing ongoing employer contributions.
• Additional contributions: Some workplace schemes accept additional voluntary contributions; others don’t. A SIPP can be used alongside a workplace pension for extra contributions.

Moving old pensions into a SIPP can simplify your finances and potentially reduce fees. But pension transfers need more care than ISA transfers because the stakes are higher and some pensions have valuable benefits you might lose. See MoneyHelper’s pension transfer guide.

Exit Fees

Some older pensions have exit fees or market value reductions (MVRs). Check with your current provider before starting a transfer. For pensions entered into before 31 March 2017, exit fees are capped at 1% for those aged 55+ accessing their pension. For pensions entered into after that date, exit fees are banned entirely.

Transfer Times

Simple transfers from modern providers can complete in a couple of weeks. Transfers from older schemes, especially occupational pensions or with-profits funds, can take months. During this time, your money is usually uninvested (sitting in cash), which matters in volatile markets.

SIPP fees are typically higher than ISA fees on the same platform, and the fee structures vary more widely. The right platform depends on your pot size, how often you trade, and whether you’ll use drawdown.

Fee Structures

Percentage-based fees (e.g., 0.15% – 0.45% per year) work well for smaller pots but become expensive as your pension grows. A 0.45% fee on a £500,000 pot is £2,250 per year.

Flat fees (e.g., £5.99 – £12.99 per month) cost the same regardless of pot size. Expensive for small pots, but can mean lower costs for larger pensions.

Capped percentage fees (e.g., 0.15% capped at £375) offer a middle ground – percentage-based for smaller pots, effectively flat-fee for larger ones.

Other Factors to Consider

• Trading costs: Important if you trade frequently or rebalance often
• Regular investing: Many platforms offer free regular investments
• Investment range: Some platforms only offer their own funds
• Drawdown fees: Check if there are extra charges for taking income
• Employer contributions: Not all platforms accept them
• Mobile app: Matters if you want to manage on the go

Platform fees vary significantly depending on your pot size. Here’s what annual platform fees would cost on some popular SIPPs at different portfolio values (excluding trading costs):

*Hargreaves Lansdown £200 cap applies to shares/ETFs only; funds charged at 0.25% uncapped. AJ Bell charges 0.25% up to £250k, 0.10% £250k-£500k, 0% above £500k; shares/ETFs capped at £3.50/month.

These figures show platform fees only. Total costs also include fund fees (typically 0.05% – 0.50% depending on what you invest in) and any trading costs when you buy or sell.

Some platforms advertise “zero platform fees” for their SIPPs. They still make money – just in less obvious ways:

• Interest on uninvested cash: Your contributions and dividends sit in cash before being invested. The platform earns interest on this float.
• Foreign exchange fees: Buying international investments often incurs currency conversion fees of 0.15% – 1.5%, which can add up if you invest globally.
• Wider spreads: Some platforms earn from the difference between buy and sell prices on investments.
• Securities lending: Platforms may lend out your shares to short-sellers and keep part of the fee.
• Premium subscriptions: Basic accounts are free, but advanced features cost extra.

This isn’t necessarily bad – the total cost might still be lower than platforms with explicit fees, especially for smaller pots. Just be aware that “free” doesn’t mean the platform is operating as a charity. For pensions specifically, you’re likely holding investments for decades, so even small hidden costs compound significantly.

The Financial Services Compensation Scheme (FSCS) protects up to £85,000 per person, per firm if your SIPP provider fails. This protection is separate from cash deposit protection (which increased to £120,000 in December 2025) – you could claim both if you have both types of account.

What FSCS Actually Covers

FSCS protection kicks in when a firm fails and there’s a shortfall – meaning your investments or money can’t be returned to you. It doesn’t cover:

• Investment losses from market falls (your funds dropping in value)
• Poor investment choices or bad advice (unless you can prove negligence)
• Cryptocurrency or other unregulated investments

Ring-Fencing: Your First Line of Defence

Before FSCS even comes into play, FCA CASS rules (Client Assets Sourcebook) require platforms to hold your investments separately from their own business assets. If a platform fails, your investments should be identifiable and returnable even without FSCS. FSCS is the backstop for when this ring-fencing has somehow failed or there’s a shortfall.

Verify Your Provider

To confirm your SIPP provider is protected:

1. Find their Firm Reference Number (FRN) – usually in their website footer or terms
2. Check the FCA Financial Services Register
3. Confirm they’re authorised for the relevant regulated activities
4. Use the FSCS Investment Protection Checker

The tables above compare execution-only SIPP providers – platforms where you make your own investment decisions. I’ve focused on the fees and features most relevant to DIY investors: platform charges, trading costs, investment range, and whether key features like drawdown and employer contributions are available.

This comparison doesn’t include:

• Advised SIPPs: Platforms where you pay for financial advice or portfolio management
• Full SIPPs: Platforms allowing commercial property, unquoted shares, and other complex investments (these have higher fees and are aimed at sophisticated investors)
• Robo-advisors: Services like Nutmeg or Wealthify where your portfolio is managed for you

I update this comparison when providers change their fees or when significant new platforms launch. SIPP fees don’t change as frequently as you might think – most providers only adjust pricing every year or two. If you spot something outdated, please let me know.

Some links on this page are affiliate links, meaning I may earn a commission if you open an account. This doesn’t affect what you pay and doesn’t influence which platforms I recommend. I use several of these platforms myself.