Personal Pension (SIPP)
Invest for your future self, with someone in your corner
- Portfolios built and rebalanced by experts
- A financial coach to talk to, at no extra cost
- Bring old pensions together in one place
- Start from £25, with no hidden charges and no exit fees
Part of Octopus Group
Remember, the value of investments can go up and down, so you may get back less money than you put in. Tax depends on your individual circumstances and the regulations may change in the future.
At a glance
The short version
Everything most people want to know, in one place.
What you’re invested in | One of 3 globally diversified portfolios, built and regularly rebalanced by professionals. Compare them |
Support included | 1-to-1 sessions with a financial coach whenever you have a question, at no extra cost. What that covers |
Minimum to start | Free to open. Minimum £25 investment. |
What it costs | Between 0.58% and 0.60% a year, depending on the portfolio you choose. Full breakdown |
How much you can pay in | 100% of your annual income, up to the maximum annual allowance of £60,000 each tax year. |
Tax on returns | No capital gains tax and no income tax on your returns. |
Tax relief | Get an automatic 25% top-up from the government to your contributions. If you’re a higher or additional rate taxpayer, you can claim back even more from HMRC. How tax relief work |
Getting your money out | Take it as one or more lump sums from age 55 (57 from April 2028), or transfer to another provider. Usually 25% is tax-free, and the rest is taxed as income. We don’t currently offer drawdown. Your options |
Bringing your pensions together | Transfer old workplace or personal pensions, so you can see everything in one place. How transfers work |
Who decides if it’s right | You do, with someone to talk it through. You choose your portfolio, and a coach helps you understand your options. |
Who can open one | 18+, a UK resident and taxpayer. We can’t help US citizens or dual US citizens. |
Additional benefits | Help for life’s other moments, including mortgages, protection and wills. |
Financial coaches do not provide regulated advice. They do not make personal recommendations or review your suitability for investment products.
Mortgage and protection advice are regulated activities provided by Octopus Money Financial Solutions Limited.
Tool
The short version
Answer a few quick questions to see how your pension compares to others your age. It takes just a few minutes.
This tool gives general information only. It isn’t personal financial advice.
How to start
Three steps to open one
Open your account, free
A few details and an ID check. [Copy needed how long it takes.]
Choose Cautious, Balanced or Adventurous
Compare all three above – or ask a money expert if you’re unsure where to start.
Add money from £25, or transfer an ISA
One-off or monthly, up to £20,000 a tax year. We manage and rebalance it from there.
Portfolios
Pick the portfolio that fits you
You choose the approach. Our experts do the work of building and rebalancing it. Pick the one that matches how comfortable you are with ups and downs while you grow your money over the longer term.
Cautious
A steadier way to invest for the long term. Fewer ups and downs, and lower potential returns.
Balanced
The middle ground. More ups and downs than Cautious, with more potential for growth. Fewer ups and downs than Adventurous, with less potential for growth.
Adventurous
For people who can sit through bigger falls in exchange for higher potential returns over time.
Fees
Around 0.60% a year, all in
That’s a 0.40% yearly platform fee plus the cost of managing your investments. We’ll always confirm your exact cost before you invest.
- Free to open
- Invest from £25
- No exit fees
- No hidden charges
Worked example
£60
per year
On a £10,000 balance
Illustrative example only. Your exact cost will be confirmed before you invest.
Our app
Investing made easier, wherever you are
Download the Octopus Money app to check your balance, track performance and manage your investments on the go
Who it’s for
Is this the right account for you?
It could be right for you if
- You’re saving for retirement
- You don’t need the money until you’re at least 55 (or 57 from April 2028)
- You’d like someone to talk to about your retirement plans
- You’d rather experts built and managed your portfolio
- You only want to take out money in lump sums
- You understand the tax implications of taking money out of your pension
It’s not right for you if
You have a final salary pension (also known as a defined benefit pension), or one with guarantees you’d lose by transferring
You’d like to take a regular income from your pension (called drawdown). We don’t currently offer it.
You’d be giving up employer contributions
You’d like tailored advice on how much to save or how to take your income. Our Wealth Planning service may suit you better.
You want a guaranteed return. Investments can fall as well as rise
With Wealth Planning we support households that have at least £200k to invest from existing savings, pensions and investments and more complex needs.
An initial free session with a Financial Adviser is an introductory conversation only and does not constitute regulated advice or a personal recommendation.
Coach
Help for life’s other moments
What you need from your money changes as your life does. Your account comes with support for the big moments too:
- A financial coach to talk to whenever you have a question
- An introductory session with a mortgage and protection adviser, at no cost
- 20% off online wills from Octopus Legacy
Financial coaches do not provide regulated advice. They do not make personal recommendations or review your suitability for investment products.
Your initial session with a protection and mortgages adviser is an introductory conversation only and does not constitute regulated advice or a personal recommendation. We’re paid a commission by the insurance or mortgage provider you choose.
Some providers may charge their own arrangement fee and exit fees. We’ll always confirm this with you before you go ahead.
Support
Frequently asked questions
Can I transfer a pension I already have?
Yes. You can bring pensions from old jobs or other providers. Transfers start from inside your account, so you’ll open your account first and then begin your transfer from there. It usually takes 4-6 weeks, depending on your old provider and how the request is made. Requests made online tend to be the fastest.
Before you transfer, check whether your old pension has exit fees, guaranteed benefits (such as a guaranteed annuity rate), or employer contributions you’d lose. You won’t be able to transfer a final salary (defined benefit) pension.
If you’re not sure what your pension includes, we can help you work it through. Just email us at support@octopusmoney.com
How does tax relief work with a Personal Pension?
When you pay into your Personal Pension, the government tops up your payment by 25%. So if you pay in £80, the government adds £20, and £100 goes into your pension.
We claim the top-up from HMRC and add it to your pension for you.
If you pay higher or additional rate tax
You can claim back extra tax relief through your self-assessment tax return, or by contacting HMRC. This extra relief doesn’t go into your pension. It comes back to you as a tax refund or a lower tax bill.
If you don’t pay tax
You still get the 25% top-up on payments of up to £2,880 a year.
How much does it cost to invest with Octopus Money?
Around 0.60% a year, all in. That’s 0.40% for the platform, 0.10% for managing your portfolio and 0.08% to 0.10% for the funds you’re invested in.
On a £10,000 investment, that works out at about £5 a month.
Opening an account is free. So is topping up, switching funds, withdrawing money and closing your account, and there are no exit fees. We’ll confirm your exact cost before you invest, and fees come straight out of your investments, so there’s nothing to set up separately.
How much do I need to start investing?
£25. You can invest a one-off amount or set up a monthly payment, and opening an account is free.
Can anyone open a Personal Pension?
You’ll need to be 18 or over, and a UK resident and taxpayer. We can’t open accounts for US citizens or dual US citizens.
Should I invest in a Personal Pension or a Stocks and Shares ISA?
That depends on your own circumstances, and it’s your decision to make. Here’s how the two differ.
A pension gives you tax relief on what you pay in, so your contributions get topped up. Most people can pay in up to 100% of their earnings, with a maximum of £60,000 a year. You usually can’t take the money out until you’re 55, rising to 57 from April 2028.
A Stocks and Shares ISA doesn’t give you tax relief on the way in, but there’s no capital gains tax or income tax on your returns, and you can take your money out whenever you want. You can pay in up to £20,000 each tax year.
Plenty of people use both. If you’d like to talk it through, you can book a session with a financial coach, who can help you understand the differences, so you can decide for yourself. For a personal recommendation, you’d need regulated financial advice.
This is general information, not personal financial advice. Tax rules may change and depend on your circumstances. The £60,000 pension limit may be lower in some cases, and is currently £10,000 a year if you’ve started taking taxable pension income. The £20,000 ISA limit applies across all the ISAs you hold, with any provider.
How can I take money out of my Personal Pension?
You can usually take money from your pension from age 55, rising to 57 from April 2028.
Our Personal Pension doesn’t currently offer drawdown (where you keep your pension invested and take a regular income from it).
At the moment, you can either take lump sums or transfer your pension to another provider.
If you’d like to take regular income from your pension with Octopus Money, you’ll need to take regulated financial advice through our <<Wealth Planning>> service, though some eligibility criteria will apply.
If our regulated financial advice service isn’t for you, you have a few options:
1. Taking lump sums
Usually 25% of each lump sum is tax-free, and the rest is added to your income for that tax year and taxed. The money you leave in your pension stays invested.
For example, if you take £10,000, usually £2,500 is tax-free and £7,500 is taxed as income.
There’s a limit to how much tax-free cash you can take across all your pensions. For most people, this is £268,275.
Things to know before you take a lump sum
- You could pay more tax than you expect. Large withdrawals are added to your income for the year, which could push you into a higher tax band.
- You may be emergency taxed. On your first withdrawal, HMRC may tell us to use an emergency tax code. If you pay too much tax, you can claim it back from HMRC.
- You’ll be able to pay less into pensions with tax relief. Once you take taxable money from any pension, the amount you can pay into pensions with tax relief usually drops from £60,000 to £10,000 a year.
- Your money may need to last a long time. Think about how long you’ll need your savings to last, and the effect of inflation over time.
- Your pension may be treated differently from your other savings. Money taken out of your pension may count towards your estate for inheritance tax, and could affect any means-tested benefits you receive.
2. Transferring to another provider
If you’d like a regular income, you can transfer your pension to a provider that offers drawdown or an annuity (a guaranteed income for life). Transfers start from inside your account and usually take 4-6 weeks. Before you transfer, check the new provider’s fees and make sure they’re authorised by the FCA.
Get free, impartial guidance
Before you decide, MoneyHelper’s free Pension Wise service can help you understand your options. You can book an appointment at moneyhelper.org.uk/pensionwise or call 0800 138 3944.
Be wary of anyone contacting you out of the blue about your pension. Find out how to spot a pension scam at fca.org.uk/scamsmart.
Can I speak to someone about my investments?
Yes, at no extra cost. Every account comes with 1-to-1 sessions from a financial coach. Book a session online and tell us what you’d like to cover. Sessions are held via video call and last 30 minutes. Once you’ve opened your account with us, you can book a session whenever you have a question.
Our financial coaches give guidance, not regulated financial advice. They won’t recommend a specific product or tell you whether an investment is suitable for you.
Do you give Financial Advice?
Our financial coaches give guidance, not regulated financial advice. They’ll help you understand your options and think through your plans, but they won’t recommend a particular product or assess whether an investment is suitable for you. That decision is always yours.
Regulated financial advice is only provided through our FCA-regulated financial advisers. If regulated financial advice may be appropriate for you, we’ll explain what that involves and how to access it separately. Read more about our Wealth Planning service here.