Answers · UK 2025/26
Should I use a SIPP or my workplace pension?
Workplace pensions usually win for active employees because of the employer matching contribution — never turn down "free money". A SIPP makes sense alongside, for self-employed, or to consolidate old pension pots with wider investment choice and lower fees.
Full answer
Workplace pension advantages: employer contributions (minimum 3% under auto-enrolment, often more); often available via salary sacrifice (NI savings); some schemes are defined-benefit (NHS, Teachers', Civil Service) and unbeatable. Always contribute at least enough to get the full employer match. SIPP (Self-Invested Personal Pension) advantages: wider investment choice (individual shares, ETFs, funds, commercial property); platform fees can be 0.15–0.45% vs many workplace schemes at 0.5–1.0%; full control over investments. Disadvantages: no employer contribution (unless your employer specifically pays into a SIPP); no salary sacrifice typically; risk of poor self-managed decisions. Common strategy: contribute to workplace at least up to employer max → fund SIPP for additional pension saving (especially higher rate taxpayers wanting to reduce income to £100k Personal Allowance threshold). Consolidating old pension pots into a SIPP usually saves on fees, but check for guaranteed annuity rates or protected tax-free cash before transferring.
Try the calculator
Related guides
More answers
This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.