Pay your pension some attention

FAQs

SIPP basics

• What is a SIPP?

  A SIPP is a Self-Invested Personal Pension. It works much the same way as other personal pensions. You add money to your pension as and when you like. The government pays in an extra 20% in pension tax relief. If you pay a higher rate of tax, you’ll usually be able to claim back even more via your tax return. Once it’s in your SIPP, your money can grow free from UK tax.

  Traditional personal pensions tend to offer between a dozen and several hundred funds. But their charges can be hefty, particularly on older plans. Stakeholder pensions have lower charges, but tend to offer a more limited choice of funds.

  The wide investment choice in SIPPs can make a significant difference to your pension. That’s because how your investments perform can have a large impact on the size of your pension pot and then your retirement. SIPPs can be low-cost if you are happy choosing your own investments without advice. The charges will vary depending on the SIPP provider and the service they provide.

  See our HL SIPP charges

• What’s the most I can add to a SIPP?

  If you’re UK resident under 75, you can usually add as much as you earn and receive tax relief each year. There is also an annual allowance (£60,000 for most people) which limits what you can pay in. Each contribution includes the money you put in, as well as what the government adds in tax relief.

  Learn more about paying into your pension

  Tax rules can change over time and the relief you receive depends on your circumstances.

Opening an HL SIPP

• What’s the minimum I need to open an HL SIPP?

  You can open a SIPP with us from £100 or with a Direct Debit from £25 per month.

• What can I invest in?

  In the HL SIPP you can invest for your retirement by choosing from:

  • Over 2,500 funds
  • UK and overseas shares
  • Bonds, investment trusts, and exchange-traded funds (ETFs)
  • Ready-made investment portfolios built by our experts

  SIPP investment ideas

• How do I open a SIPP with cash from my HL Fund and Share Account?

  The fastest way to open a SIPP using cash from your Fund and Share Account is online. Please read the key features (including contribution checklist) and terms and conditions (including tariff of charges) first.

  1. Log in to your Fund and Share Account.
  2. Select the 'Cash' tab.
  3. Select ‘Transfer Money’ in the quick links on the right of the screen.

  You can also do this over the phone or by post.

• How do I set up a Direct Debit for my SIPP?

  You can set up a Direct Debit for your SIPP from £25 a month. Direct Debits can go into funds, FTSE 350 shares, selected investment trusts & exchange-traded funds (ETFs), or be held as cash.

  To get started, log in to your account and select the ‘Monthly Savings’ tab.

  Direct Debit payments will leave your bank account on the 7th of each month (or the next working day), and be invested on the 10th (or the next working day).

• Can I have more than one pension?

  You can have as many personal pensions as you like. But you must make sure your total contributions to all your pensions don’t exceed your personal contribution limits, the annual allowance, and the lifetime allowance.

Transferring to an HL SIPP

• What type of pension can I transfer?

  You can transfer most types of pension to the HL SIPP:

  • Personal and stakeholder pensions
  • Pensions in drawdown
  • Retirement Annuity Contracts (RACs)
  • Self-Invested Personal Pensions
  • Most Additional Voluntary Contribution plans (AVCs) including Free Standing AVCs
  • Executive Pension Plans (EPPs)
  • Most paid-up occupational money purchase pensions
  • Old protected-rights pensions accrued from contracting out of the State Second Pension or SERPS (State Earnings Related Pension)

  If you’re part of a defined-benefit (DB) pension, such as a ‘final salary’ scheme, transferring your pension to a personal plan is probably not in your best interest. These pensions not only give you a guaranteed income, they also normally offer benefits to a spouse or partner after you die. You might be able to transfer, but if the transfer value is more than £30,000, you’ll have to take advice from a regulated financial adviser and provide proof that the advice is in favour of transferring.

• How long will the transfer take?

  If your pension is transferred as cash, this means your provider will sell your pension investments, and transfer the cash amount to your HL SIPP. You will not be invested during the transfer, so you will not make losses or gains. You can buy investments once the transfer is complete. Electronic transfers usually takes 3-4 weeks, and postal 8-10 weeks, depending on your provider.

  If your pension is transferred as it is (invested in the stock market), your provider will transfer each investment and any cash to your HL SIPP. If you hold an investment we do not offer, we’ll contact you during the transfer to confirm your preference. This type of transfer usually takes 6-8 weeks, but can take longer depending on your investments and provider. You stay invested during the transfer, so could make gains and losses. Usually you cannot trade until the transfer completes. Please note, we can only accept online applications of this kind for existing Self-Invested Personal Pensions or Small Self-Administered Schemes. If you hold a different pension, and are eligible to transfer your investments, please contact our helpdesk on 0117 980 9926 for a postal application.

• What are the charges for transferring to you?

  We don’t charge you to transfer your pension, but you should check with your current provider if they’ll charge you any exit fees, or if you’ll lose any guarantees by transferring. Make sure you do this before you start your transfer.

  View our SIPP charges

• Can I transfer to you and then take money out of my pension immediately?

  Yes, but normally only if you’re 55 or over. You’ll need to transfer your pension first. Then, once your transfer is complete, you can apply to take money from the HL SIPP.