SIPP Calculator UK 2026/27

The annual allowance for 2026/27 is £60,000 — the maximum total pension contributions (across all your pensions, including SIPP contributions, employer contributions, and tax relief) that can receive tax relief in a single tax year. Your personal contributions are also limited to 100% of your UK earnings.

If you have no UK earnings, you can still contribute up to £2,880/year to a SIPP (HMRC tops it up to £3,600). Carry forward can allow contributions above £60,000 if you have unused allowance from the previous three tax years. If your adjusted income exceeds £260,000, the tapered allowance applies. Use our Pension Tax Calculator to check your allowance position.

Yes, absolutely. You can hold any number of pensions simultaneously. The only constraint is that total contributions across all pensions combined must not exceed the annual allowance (£60,000). Many people contribute to a workplace pension to capture employer contributions (which you should never forego — it's free money) and also hold a SIPP for additional voluntary contributions or to consolidate old pensions from previous employers.

Always check the combined contribution total against the annual allowance. If you're also building up defined benefit pension entitlement, the "pension input amount" from that scheme counts too. Use our HMRC Pension Tax Calculator to model combined pension inputs.

Company directors have particularly powerful SIPP options. Their limited company can pay employer contributions directly into the director's SIPP — these are a corporation tax-deductible business expense and attract no National Insurance. The company's contributions count toward the £60,000 annual allowance but are not capped by the director's personal earnings.

A director taking a low salary (for NI efficiency) can have the company make large employer contributions up to £60,000 per year — effectively extracting company profits into their pension at a total tax rate potentially well below the standard income tax and NI route. This strategy requires careful planning. Use our Employer Pension Contribution Calculator and consult a tax adviser.

Yes. Transferring a defined contribution workplace pension to a SIPP does not use your annual allowance and does not trigger any tax event — the money moves as a pension-to-pension transfer. This is a common way to consolidate multiple old pensions into one SIPP for easier management, potentially lower combined charges, and broader investment choice.

However, if you are transferring a defined benefit (final salary) pension, you must be very cautious. Transfers over £30,000 require FCA-regulated advice by law. Defined benefit pensions offer guaranteed income, inflation protection, and spouse benefits that are very difficult to replicate — most people are better off keeping them. Use our CETV Calculator to understand what a transfer value might look like, and always seek regulated advice before proceeding.

You can normally access your SIPP from age 55, rising to 57 on 6 April 2028. You cannot access it earlier except in cases of serious ill health. Some individuals have a "protected pension age" allowing access before 55 — typically professional athletes, police, and firefighters in specific schemes.

At retirement you can: take 25% tax-free (PCLS), enter flexible drawdown, take UFPLS (each withdrawal 25% tax-free), buy an annuity, or any combination. Use our Retirement Age Calculator to find your State Pension age alongside your SIPP access date, and our Pension Age Calculator for early access options.

SIPP charges typically have two components: the platform/administration charge (charged by the provider, often as a % of pot or fixed fee) and the fund charge (the Ongoing Charges Figure or OCF of the investment funds you hold). Together these determine your total annual cost.

For passive index funds or ETFs, combined charges can be as low as 0.15–0.25% (e.g. Vanguard). For actively managed funds on a mid-range platform, 0.75–1.25% is common. Full SIPPs holding commercial property or complex assets can cost 1.5%+ per year. On a £200,000 pot, the difference between 0.25% and 1.25% in annual charges is £2,000/year — £60,000 over 30 years before investment returns. Check and compare charges at The Lang Cat's platform comparison tools.

SIPPs are currently outside your estate for Inheritance Tax purposes — though note the Government announced in October 2024 plans to bring unspent pension pots into the IHT estate from April 2027, subject to legislation. If you die before age 75, your nominated beneficiaries can receive the entire SIPP completely free of income tax. If you die at age 75 or after, beneficiaries pay income tax at their marginal rate on withdrawals.

Critically, your SIPP does not automatically pass under your Will — it passes via a separate "expression of wishes" form held by your provider. Keep this updated whenever your circumstances change (e.g. after marriage, divorce, or the birth of children). Your trustees have discretion but will usually follow your wishes. Review this annually alongside your Will.