SIPP investment ideas
Need inspiration for your SIPP investments? We have made it easy to get started.
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.
Expert ideas for your SIPP
We've made it easy to get started with your SIPP. Take inspiration from our Super 60 and ACE 40 rated investment lists, or get a helping hand with our Quick Start Funds.
Choosing a Quick-start Fund
Our Quick-start Funds are an ideal way to get started with your pension. These low-cost funds have been specially selected by experts, and many experienced investors rely on them too.
You will need to choose the level of risk you are comfortable with. As a very general rule, investors tend to choose higher risk earlier in life, and reduce their risk as they approach retirement.
But please remember these risk levels are just a guide, and there is risk involved with any kind of investing.
You can choose between three passive funds from Vanguard (shown below), and three actively managed sustainable funds from Columbia Threadneedle (CT).
Vanguard LifeStrategy® 20% Equity Fund
If you are looking for less risk, rather than higher returns, this fund is a great place to start.
Vanguard LifeStrategy® 60% Equity Fund
If you are comfortable with a little more risk, this fund is a good middle ground investment.
Vanguard LifeStrategy® 80% Equity Fund
For potentially higher returns, in exchange for more risk, this fund could suit your portfolio.
ii Super 60 investments
Our Super 60 rated list includes a wide range of active and passive funds, investment trusts, and exchange-traded funds (ETFs), rigorously selected by experts.
Popular SIPP investments with ii customers
Here are the shares, funds, investment trusts and ETFs that are most held by our SIPP customers (by GBP value, as at 31 March 2024). Our most popular investments should not be taken as personal recommendations to buy or sell a particular stock or fund, and are not intended to provide advice.
What type of SIPP investments do ii customers choose?
Here are the types of investments ii customers held in their SIPP in the first half of 2023:
- Funds (44.06%)
- Investment trusts (22.22%)
- Shares (21.51%)
- Exchange-traded products such as ETFs (11.48%)
- Bonds (0.16%)
- Gilts (0.56%)
- Other (0.01%)
Source: interactive investor. Note: These figures represent assets held by ii SIPP customers between 1 January and 30 June 2023.
It’s a relief to finally be in control of my own money. Making the switch was very easy – I should have done it ages ago.
SIPP investment best practice
As with any pension, it's important to make the most of the advantages open to you. Find out more about maximising the value of your pension pot with our handy guide.
1) Pay in as much as you can: You might be tempted to start small, and increase your contributions later in your career, but increasing your investments now can make a big impact thanks to compounding returns. Free regular investing in your SIPP is a great way to build up your pension pot, and our dividend reinvestment service is another useful tool for boosting your funds.
2) Take full advantage of tax relief options: Tax relief on SIPP contributions means that you can put £10 in your pension for a cost of only £8 – an immediate return of 25%! Higher-rate tax payers can claim back a further 20-25% in tax relief on a Self Assessment Tax Return. You can also maximise returns by signing up for salary sacrifice contributions from your employer. This means that you will not pay National Insurance on the income being used to make contributions, leaving you with more money to invest.
3) Increase contributions in line with earnings: It’s a good idea to increase your SIPP contributions as you progress in your career. Pay-rises and bonuses represent a great opportunity to do this without seeing a reduction in your take-home pay.
4) Build a diverse portfolio: SIPPs give you the opportunity to invest in a wider set of stocks and shares than traditional pensions, and you should make the most of this flexibility. By building a diverse portfolio, you have the ability to manage your level of risk and adapt to changing circumstances, in your own life and in the market. Our Super 60 rated investment list could be a good place to start.
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.