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    • Home • Advice • Common questions

    I don't have a workplace pension and would like to start a SIPP

    19 June 2023

    Question by Viesha

    I don't have a workplace pension and would like to start a SIPP. I'm a Freelancer earning below the tax threshold but have some savings from an inheritance (about 160k). Not sure where to start with a SIPP.

    Answered by Lisa Caplan

    Hi Viesha

    The big benefit of a SIPP is the tax relief. This is limited to your earned incomed (and an annual amount of £60,000). If you do not have earned income, you can contribute £2,880, and you will get a top up of £720 as tax relief.

    You can consider other tax efficient pots such as ISAs. The annual allowance for ISAs is £20,000.

    Both SIPPS and ISAs allow for a lot of flexibility in investment choice.

    As your inheritance is larger than either of these amounts, you can invest in a general account.

    Hope this helps. Let me know if you want some more information.

    Regards

    Lisa

    Answered by

    Lisa Caplan

    Director Foundation Planning

    I am a chartered Financial Planner, with over 14 years of experience helping people to understand their financial position and to make good financial decisions. I offer easily accessible and digestible guidance and advice on key areas, so that you can move forward with confidence.

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