How many SIPPs can I have?
You can have as many SIPPs as you want.
Can I have more than one SIPP?
As there are differences between the SIPPs available, it is possible, and in some instances advantageous, to hold more than one.
The investment benefits of SIPPs mean that many people do choose to hold multiple SIPPs, spreading their pension savings across a range of providers and investments.
For example, you might start out with a full SIPP to hold the commercial property you would like to invest in. As you are keen to invest in shares and funds too, you also take out a low-cost platform SIPP to take advantage of the lower charges on these investments. In this example, having two SIPPs could be more cost-effective than only having one full SIPP, with the savings you make on charges helping your pension grow faster.
There are also no restrictions on the other investment vehicles you can hold alongside a SIPP. Workplace pensions can sit comfortably alongside a SIPP, allowing you to take advantage of your employer’s contributions. Individual savings accounts (ISAs) also work well with SIPPs, increasing the amount of money you can invest tax-efficiently and offering additional flexibility when it comes to funding retirement.
Holding multiple SIPPs has several advantages but you also need to be aware of the pitfalls, potential catches and the rules.
SIPP rules
Whether you have one SIPP or multiple SIPPs, you do need to be mindful of the rules on contributions. The annual allowance applies across all of your pensions, including any workplace ones you might have too.
You can contribute the lower of £60,000 or 100% of your annual earnings each year and receive tax relief. This includes your own contributions but also any employer contributions and tax relief. A tax charge may apply if you exceed the allowance, effectively clawing back any tax relief you received on the excess contributions.
Read more: SIPP contribution limits and rules
Advantages of having multiple SIPPs
- Having more than one SIPP gives you variety. Many SIPP providers offer access to a wide range of investments but, if your appetite is broad or you want something specific, you may need to hold multiple SIPPs.
- It can also be more cost-effective to have multiple SIPPs. Differences in charges on SIPPs can mean it makes sense to hold your shares and funds on a low-cost platform SIPP rather than find one provider that does everything.
- Spreading your pension savings across two or more SIPP providers can also help you manage risk. If service standards or investment choice changes at one provider, your exposure will be more limited with multiple SIPPs.
Disadvantages of having multiple SIPPs
- The main disadvantage of having more than one SIPP is that it becomes harder to manage your pension savings. Holding everything in one place makes it easy to spot when your portfolio is overweight in one particular asset or region and take steps to rebalance it. This exercise is much more challenging when your investments are spread across two or more SIPPs.
- Holding more than one SIPP also makes it harder to keep track of your annual allowance.
- There can be other financial reasons to keep your SIPPs more streamlined. Multiple SIPPs can mean multiple charges or fees so weigh up whether the advantages of having more than one SIPP outweigh the costs.
Getting financial advice
If you are unsure about your SIPP choices, it is worth seeking professional financial advice. An independent financial adviser will be able to assess your circumstances and recommend the most appropriate action to achieve your goals.
If you are over 50, you can get free and impartial pensions guidance from Pension Wise. This is a government service designed to help people understand their pension options.
How can Pension Wise help?
If you have a defined contribution pension scheme and are 50 or over, then you can access free, impartial guidance on your pension options by booking a face to face or telephone appointment with Pension Wise, a service from MoneyHelper.
If you are under 50, you can still access free, impartial help and information about your pensions from MoneyHelper.
Learn more about our SIPP
Learn how to make the most out of your SIPP with our useful guides.
Please remember, SIPPs are aimed at people happy to make their own investment decisions. Investment value can go up or down and you could get back less than you invest. You can normally only access the money from age 55 (57 from 2028). We recommend seeking advice from a suitably qualified financial advisor before making any decisions. Pension and tax rules depend on your circumstances and may change in future.