United Kingdom Self-Invested Personal Pension (SIPP)Calculator
This calculator estimates the projected value of a Self-Invested Personal Pension (SIPP) at retirement for the 2026/27 tax year. Calculations apply HMRC’s pension tax relief rules, the £60,000 Annual Allowance, and the 25% tax-free lump sum capped at the £268,275 Lump Sum Allowance.
Enter Your Details
Input your age, current pension value, and monthly personal and employer contributions using the fields provided.
Review the Breakdown
Results update automatically. Each figure reflects the contributions, tax band, and growth rate entered.
Adjust the Assumptions
Change the growth rate, retirement age, or contributions to model different SIPP scenarios.
UK SIPP Calculator
2026/27 rules · Projected pension pot & tax relief
Pot Breakdown
HIGHER RATEYour SIPP projection summary
A plain-English read of the projection — based on the contributions entered, basic-rate tax relief added at source, and the assumed annual growth rate. All figures are illustrative estimates, not guarantees.
Pot growth over time
The projected pot value year by year (navy) compared with the total amount paid in including tax relief (slate). The gap between the lines represents assumed investment growth, which is not guaranteed.
| Age | Total Paid In | Projected Pot | Of Which Growth |
|---|
Tax relief on your contributions
A SIPP grosses up personal contributions at the 20% basic rate automatically. Higher and additional-rate taxpayers reclaim the rest via Self Assessment. GOV.UK pension tax relief ↗
2026/27 pension allowances & limits
Key HMRC figures that apply to SIPP contributions and withdrawals for the 2026/27 tax year. Source: GOV.UK tax on your private pension ↗
| Allowance / Limit | 2026/27 Figure | Notes |
|---|---|---|
| Annual Allowance | £60,000 | Combined personal (grossed-up) + employer contributions per year |
| Money Purchase Annual Allowance | £10,000 | Applies once a DC pension is flexibly accessed |
| Tapered Annual Allowance | £60,000 → £10,000 | Reduces £1 per £2 of adjusted income over £260,000 (threshold income £200,000) |
| Earnings limit for relief | 100% / £3,600 | Higher of 100% of relevant UK earnings or £3,600 gross |
| Tax-free lump sum (PCLS) | 25% | Capped by the Lump Sum Allowance |
| Lump Sum Allowance | £268,275 | Maximum standard tax-free lump sum across all pensions |
| Lump Sum & Death Benefit Allowance | £1,073,100 | Standard limit on tax-free lump sums incl. on death / serious ill-health |
| Normal Minimum Pension Age | 55 → 57 | Rises to 57 from 6 April 2028 |
| State Pension age | 66 → 67 | Rising to 67, phased between 2026 and 2028 |
How a SIPP Works in the UK
A reference guide to the rules governing Self-Invested Personal Pensions — the key 2026/27 allowances, how a SIPP compares with other wrappers, and worked examples. All figures verified against official GOV.UK / HMRC guidance.
2026/27 SIPP Allowances at a Glance
| Allowance / Limit | 2026/27 | Applies To |
|---|---|---|
| Annual Allowance | £60,000 | Total contributions across all pensions per tax year |
| Money Purchase Annual Allowance | £10,000 | Once a DC pension is flexibly accessed |
| Tapered Annual Allowance | £60,000 → £10,000 | Adjusted income over £260,000 (threshold income £200,000) |
| Earnings limit for relief | 100% or £3,600 | Higher of 100% of relevant UK earnings or £3,600 gross |
| Lump Sum Allowance (tax-free cash) | £268,275 | Caps the standard 25% tax-free lump sum |
| Lump Sum & Death Benefit Allowance | £1,073,100 | Tax-free lump sums incl. on death or serious ill-health |
| Carry forward | 3 years | Unused Annual Allowance from the previous three tax years |
How SIPP Tax Relief & Access Work
The mechanics that distinguish a SIPP — relief at source, the Annual Allowance, and the rules on accessing the pot.
Relief at source
Personal contributions are paid from after-tax income. The SIPP provider claims 20% basic-rate relief from HMRC and adds it to the pot, so £80 paid in becomes £100 invested.
Higher-rate reclaim
Higher-rate (40%) and additional-rate (45%) taxpayers can reclaim further relief through Self Assessment. This reclaim is paid to the individual as reduced tax — it is not added to the pension pot.
Annual Allowance
Up to £60,000 a year (combined personal grossed-up and employer contributions) receives tax relief. Unused allowance from the previous three years can be carried forward, subject to the earnings limit.
Accessing the pot
A SIPP can normally be accessed from age 55 (57 from 6 April 2028). Up to 25% is usually tax-free (capped at £268,275); the remainder is taxed as income when drawn.
Key Comparisons
How a SIPP sits alongside other pension and savings wrappers. These are factual structural differences, not recommendations.
SIPP vs Stocks & Shares ISA
| Factor | SIPP (Pension) | Stocks & Shares ISA |
|---|---|---|
| Tax relief on contributions | Yes — 20% to 45% at marginal rate | None — paid from taxed income |
| Annual limit | £60,000 Annual Allowance (or earnings) | £20,000 ISA allowance |
| Access age | From 55 (57 from 2028) | Any time |
| Tax on withdrawal | 25% tax-free; rest taxed as income | Fully tax-free |
| Growth inside wrapper | Free of UK income tax & CGT | Free of UK income tax & CGT |
SIPP vs Workplace Pension
| Factor | SIPP | Workplace Pension |
|---|---|---|
| Who sets it up | The individual, with a chosen provider | The employer, under auto-enrolment |
| Investment choice | Wide — funds, shares, trusts, more | Usually a limited fund range |
| Employer contributions | Possible, if the employer agrees | Mandatory minimum under auto-enrolment |
| Relief method | Relief at source (typically) | Net pay or relief at source, scheme-dependent |
| Annual Allowance | £60,000 combined across all pensions | |
Relief at Source vs Net Pay
| Method | How relief is given | Higher-rate relief |
|---|---|---|
| Relief at source (most SIPPs) | Paid from net pay; provider adds 20% | Reclaimed via Self Assessment |
| Net pay arrangement | Deducted from gross pay before tax | Given automatically at marginal rate |
Worked Examples
Illustrative scenarios showing how SIPP rules apply in practice. Figures are examples only and do not reflect any individual's circumstances or any guaranteed outcome.
UK SIPP Rules & Numbers Dashboard
A scannable view of the key SIPP figures, tax relief by income band, an illustrative growth comparison, and the rules on access ages — all sourced from GOV.UK / HMRC for the 2026/27 tax year.
Net cost of £100 in your pension
After all tax relief at each income tax band (England, Wales & Northern Ireland). Relief at source adds 20% automatically; higher and additional-rate relief is reclaimed via Self Assessment.
Illustrative growth of £250/month
A £250 monthly contribution over 30 years at three assumed annual growth rates. Illustrative only — returns are not guaranteed and the pot can fall as well as rise.
Tapered Annual Allowance
For higher earners, the £60,000 Annual Allowance reduces by £1 for every £2 of adjusted income over £260,000, down to a minimum of £10,000.
| Adjusted income | Annual Allowance |
|---|---|
| Up to £260,000 | £60,000 |
| £280,000 | £50,000 |
| £300,000 | £40,000 |
| £320,000 | £30,000 |
| £340,000 | £20,000 |
| £360,000 or more | £10,000 (floor) |
Key pension ages
When private and State pensions can be accessed. The minimum pension age is set to remain 10 years below the State Pension age.
Where the tax-free lump sum cap bites
The 25% tax-free lump sum is capped at the £268,275 Lump Sum Allowance. For pots above £1,073,100, the tax-free portion stops rising at £268,275.
| Pot at retirement | 25% of pot | Tax-free lump sum | Capped? |
|---|---|---|---|
| £400,000 | £100,000 | £100,000 | No |
| £800,000 | £200,000 | £200,000 | No |
| £1,073,100 | £268,275 | £268,275 | At the limit |
| £1,500,000 | £375,000 | £268,275 | Yes — capped |
| £2,000,000 | £500,000 | £268,275 | Yes — capped |
UK Pension & SIPP Tax News & Updates
Recent HMRC, HM Treasury, FCA and DWP announcements affecting SIPP and personal pension savers — sourced from official government channels.
2026/27 Pension Allowances Confirmed — No Change
The 2026/27 tax year began with the standard Annual Allowance, Money Purchase Annual Allowance and tax-free lump sum limits all unchanged, following the Autumn Budget 2025.
Key Figures
- Standard Annual Allowance remains £60,000
- Money Purchase Annual Allowance remains £10,000
- Tapered Annual Allowance floor remains £10,000 (adjusted income over £260,000)
- Tax-free lump sum capped at the Lump Sum Allowance of £268,275
- Tax relief continues at 20% / 40% / 45% marginal rates
Impact
SIPP savers can plan against the same contribution and lump sum limits as 2025/26. Frozen thresholds mean inflation gradually erodes their real value.
What to Watch
Income tax thresholds are frozen until 2030/31, which can affect the marginal rate of relief over time.
State Pension Uprated Under the Triple Lock
The full new State Pension was uprated for 2026/27 under the triple lock, taking it to around £241 a week — close to the frozen £12,570 personal allowance.
Key Points
- Full new State Pension is approximately £241.30 a week (about £12,548 a year)
- Uprated under the triple lock — the higher of average earnings growth, CPI inflation, or 2.5%
- The State Pension is taxable income, separate from a SIPP
- As the State Pension nears the frozen personal allowance, more pensioners may begin paying small amounts of income tax
Impact
SIPP income drawn on top of the State Pension stacks for income tax purposes, which can affect the marginal rate on withdrawals.
What to Watch
State Pension age is rising to 67, phased between 2026 and 2028.
Autumn Budget 2025: Salary Sacrifice NI Relief Capped from 2029
The Chancellor announced that from 6 April 2029, National Insurance relief on pension contributions made through salary sacrifice will be capped at £2,000 a year.
Key Changes
- From 6 April 2029, salary-sacrificed pension contributions above £2,000 a year become subject to employer and employee National Insurance
- Income tax relief on pension contributions is unchanged
- Employer contributions not made via salary sacrifice remain free of NI
- SIPP personal contributions (relief at source) are not salary sacrifice and are not directly affected
Impact
Mainly affects workplace pension savers using salary sacrifice above £2,000. The NI advantage on larger sacrificed amounts reduces from 2029.
What to Watch
Detail on payroll recording of NI-able versus NI-free sacrifice is expected ahead of implementation.
Tax-Free Lump Sum & Allowances Left Unchanged
Despite pre-Budget speculation, the 25% tax-free lump sum, the Annual Allowance and the Lump Sum Allowance were all left unchanged at the Autumn Budget 2025.
Confirmed Unchanged
- 25% tax-free lump sum retained, capped at £268,275
- Annual Allowance held at £60,000
- Pension tax relief framework unchanged (20% / 40% / 45%)
- Income tax thresholds frozen until 2030/31
Impact
Provides planning certainty for SIPP savers on contribution limits and tax-free cash for the coming years.
What to Watch
Frozen thresholds mean fiscal drag continues to pull more income into higher tax bands over time.
Unused Pension Funds to Enter Inheritance Tax Estate
From 6 April 2027, most unused pension funds and death benefits will be included in the value of a person's estate for Inheritance Tax purposes.
Key Changes
- Unused pension pots and death benefits brought within the IHT estate from 6 April 2027
- Pension scheme administrators expected to report and pay IHT due on relevant pension funds
- The standard nil-rate band remains £325,000 (higher in some circumstances)
- Reduces the previous IHT advantage of leaving pension funds untouched
Impact
Changes how large unused SIPP balances are treated on death. The effect depends on total estate value and available allowances.
What to Watch
Implementing regulations and administrator guidance are expected ahead of the April 2027 start.
Normal Minimum Pension Age Rising to 57
Legislated in the Finance Act 2022, the earliest age at which most people can access a private pension rises from 55 to 57 on 6 April 2028.
Key Points
- Normal minimum pension age increases from 55 to 57 on 6 April 2028
- Applies to defined contribution pensions including SIPPs
- Some members may hold a protected pension age from earlier scheme rules
- Ill-health access rules are unaffected
Impact
Savers planning early access may need to bridge a longer gap before a pension can be drawn.
What to Watch
The change is designed to keep the minimum pension age 10 years below the State Pension age.
State Pension Age Rising from 66 to 67
The State Pension age is increasing from 66 to 67, phased in between 2026 and 2028, affecting when people born from April 1960 onward can claim.
Key Points
- State Pension age rises from 66 to 67, phased between 2026 and 2028
- People born on or after 6 March 1961 have a State Pension age of 67
- A further rise to 68 is legislated for the 2040s (subject to review)
- The State Pension age is separate from the private-pension minimum age
Impact
Affects the gap between when a SIPP can be accessed (57 from 2028) and when the State Pension begins (67+).
What to Watch
Individual State Pension age can be checked using the GOV.UK State Pension age tool.
FCA Advice Guidance Boundary Review — Targeted Support
The FCA has been developing a new "targeted support" framework to help consumers, including pension savers, receive more help with decisions without crossing into regulated advice.
Key Points
- Aims to close the gap between generic guidance and full regulated advice
- Would allow firms to suggest options to defined groups of consumers in similar circumstances
- Pensions and retirement decisions are a primary focus area
- Consumer protections and disclosure remain central to the proposals
Impact
May change how pension and SIPP providers communicate options to customers, while preserving the advice boundary.
What to Watch
Follow FCA policy statements for final rules and implementation timing.
SIPP Questions, Answered
Common questions about Self-Invested Personal Pensions and the rules that apply for the 2026/27 tax year. Answers are factual and sourced from official GOV.UK / FCA guidance.
A Self-Invested Personal Pension (SIPP) is a type of defined-contribution personal pension that gives the holder a wide choice of investments. Contributions receive tax relief up to annual limits, the funds are invested to grow over time, and the pot can normally be accessed from the minimum pension age.
A SIPP differs from a standard personal pension mainly in the breadth of investment options available, which can include funds, individual shares, and investment trusts.
GOV.UK — Personal PensionsSIPPs are generally available to UK residents. Tax relief on personal contributions is available to those with relevant UK earnings, and a limited amount can be contributed even by those with little or no earnings.
Eligibility criteria and minimum contribution levels are set by individual SIPP providers, which are regulated by the FCA.
FCA — ConsumersA workplace pension is set up by an employer, usually under auto-enrolment, often with a limited fund range and mandatory employer contributions. A SIPP is set up by the individual with a chosen provider and typically offers a wider range of investments.
Both are subject to the same £60,000 Annual Allowance, which applies across all of a person's pensions combined.
GOV.UK — Workplace PensionsSIPPs are provided by FCA-regulated firms. Whether and how the Financial Services Compensation Scheme (FSCS) applies depends on the type of investment held and the nature of any firm failure, and protection limits vary by product type.
The value of investments held in a SIPP can fall as well as rise, and FSCS protection does not cover investment losses caused by market movements.
FCA — ConsumersMost SIPPs use relief at source. Personal contributions are paid from after-tax income, and the provider claims 20% basic-rate tax relief from HMRC and adds it to the pot. For every £80 paid in, £100 is invested.
GOV.UK — Pension Tax ReliefBasic-rate relief of 20% is added at source. Higher-rate (40%) and additional-rate (45%) taxpayers can reclaim the difference through a Self Assessment tax return. This reclaim is paid to the individual as reduced tax — it is not added to the pension pot.
A scheme can claim relief on a member's behalf for up to six years; individuals can usually back-date their own claims for the previous four tax years.
GOV.UK — Pension Tax ReliefTax relief on personal contributions is available up to 100% of relevant UK earnings, or £3,600 gross, whichever is higher. Total contributions across all pensions are also capped by the £60,000 Annual Allowance for 2026/27.
Employer contributions do not count toward the earnings limit but do count toward the Annual Allowance.
GOV.UK — Annual AllowanceThe Annual Allowance is the total that can be paid into all of a person's pensions each tax year while receiving tax relief. For 2026/27 it is £60,000, including personal grossed-up contributions, employer contributions, and tax relief.
For higher earners, the allowance tapers down to a minimum of £10,000 where adjusted income exceeds £260,000.
GOV.UK — Annual AllowanceYes — an employer can contribute to a SIPP if it agrees to do so. Employer contributions are paid gross, do not receive further individual tax relief, and count toward the £60,000 Annual Allowance.
GOV.UK — Annual AllowanceCarry forward allows unused Annual Allowance from the previous three tax years to be added to the current year's allowance. The current year's standard allowance must be used first, and contributions cannot exceed 100% of relevant UK earnings.
GOV.UK — Annual AllowanceContributions above the available Annual Allowance (after any carry forward) are subject to an Annual Allowance charge. The excess is added to taxable income and effectively removes the tax relief on that amount.
Where the charge exceeds £2,000, it may be possible to ask the pension scheme to pay it directly, which reduces future pension benefits.
GOV.UK — Annual AllowanceYes. Even with little or no relevant UK earnings, up to £3,600 gross can be contributed each tax year and still receive basic-rate tax relief. That means paying in £2,880 net, with £720 of relief added to reach £3,600.
GOV.UK — Pension Tax ReliefA SIPP can normally be accessed from the normal minimum pension age, currently 55. This rises to 57 from 6 April 2028. Earlier access is generally only possible on ill-health grounds or with a protected pension age.
Accessing a pension below the minimum age without an exemption can trigger significant unauthorised payment tax charges.
GOV.UK — Personal PensionsUp to 25% of the pension can usually be taken as a tax-free lump sum, capped at the Lump Sum Allowance of £268,275 for 2026/27. Pots large enough that 25% would exceed this figure have their tax-free amount capped, unless a protected allowance applies.
GOV.UK — Lump Sum AllowanceAmounts drawn above the 25% tax-free element are taxed as income at the marginal rate, stacked on top of the State Pension and any other income. The applicable bands for 2026/27 are 20%, 40% and 45% (different in Scotland).
GOV.UK — Income Tax RatesA SIPP can usually be passed to nominated beneficiaries. The income tax treatment of death benefits depends on the age at death and how the benefits are taken.
From 6 April 2027, most unused pension funds and death benefits will also be included in the estate for Inheritance Tax purposes.
GOV.UK — Inheritance Tax on PensionsImportant Disclaimer
For educational and informational purposes only. This calculator produces an illustrative projection of a Self-Invested Personal Pension (SIPP) based on the inputs provided and HMRC pension rules for the 2026/27 tax year. Basic-rate tax relief is applied to personal contributions at source; higher and additional-rate relief is reclaimed by the individual and is not added to the pot. Projections assume contributions continue unchanged and an assumed annual growth rate is applied. The calculator simplifies many aspects of pension planning and does not capture every individual circumstance.
Investment returns are not guaranteed. The assumed growth rate is an illustration only. The value of pension investments can fall as well as rise, and the final pot may be higher or lower than any figure shown. Past performance is not a guide to future returns, and charges, fund choice, and inflation will affect real outcomes.
Not a complete picture of pension rules. Tax treatment depends on individual circumstances. The Annual Allowance taper, the Money Purchase Annual Allowance, carry forward, the earnings limit, protected allowances, Scottish income tax rates, and the rules on accessing benefits and death benefits may all affect actual outcomes. The normal minimum pension age rises to 57 from 6 April 2028, and from 6 April 2027 most unused pension funds enter the estate for Inheritance Tax.
No warranty of accuracy. While Money Snap takes reasonable care to source figures from official authorities (HMRC, GOV.UK, FCA), this calculator is provided "as is" without any express or implied warranty as to accuracy, completeness, timeliness, or fitness for any particular purpose. Tax rates, allowances, and rules change — figures shown may be out of date, and individual circumstances not captured by the inputs may materially affect actual outcomes.
Not financial advice. Information provided is general in nature only and does not take into account personal objectives, financial situation, or needs. Results do not constitute financial, tax, or legal advice, and use of this calculator does not create an advisory relationship. Before acting on any figure shown, obtain advice from an FCA-regulated financial adviser, refer to the relevant scheme's Key Features Document, or refer to GOV.UK directly.
Limitation of liability. To the maximum extent permitted by law, Money Snap accepts no liability for any loss, damage, cost, or expense — direct or indirect — arising from reliance on this calculator or the information it produces. Users are responsible for verifying all figures with the relevant authority before relying on them. Use of this calculator is subject to our Terms of Use.
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