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.



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.