Answers · UK 2025/26

Can I have a SIPP and workplace pension UK?

Yes. You can hold a SIPP alongside any workplace pension at the same time. Contributions across all your pensions share one £60,000 annual allowance (2025/26), and personal contributions are capped at 100% of your relevant UK earnings. There is no limit on the number of pension schemes you can own.

Last updated: 16 May 2026Last reviewed: 16 May 2026How we verify

Full answer

Holding multiple pots is common and sensible. The workplace scheme captures employer contributions (which you should never refuse), while a SIPP gives you broader investment choice — typically including index funds, ETFs, individual shares, and commercial property — plus potentially lower fees. Combined rules: total gross contributions across all pensions in a tax year cannot exceed the lower of (a) £60,000 (the annual allowance, tapered for high earners above £260,000 adjusted income, to a £10,000 minimum at £360,000) and (b) 100% of your relevant UK earnings. Carry-forward lets you mop up unused allowance from the previous three tax years if you were a pension member then. SIPP contributions get 20% basic-rate relief at source from HMRC; higher and additional-rate taxpayers reclaim extra via self-assessment. Worked example: salary £80,000, paying 5% (£4,000) into the workplace pension plus £10,000 gross into a SIPP — total £14,000 against a £60,000 cap, fully relievable. Beware accidentally triggering the £10,000 Money Purchase Annual Allowance by flexibly drawing one pot while still contributing to another.