Can I have a SIPP and a workplace pension?

Yes – you can have a SIPP (self-invested personal pension) and a workplace pension at the same time. What’s more, there are benefits to using both.   

The value of your pensions can go down as well as up, so you could get back less than you invest. 

A workplace pension is provided by your employer.

You contribute a portion of your salary into the pension, and your employer adds money into it as well. Your contributions also benefit from tax relief from the government.

This type of pension is designed to provide you with a retirement income based on how much has been contributed over your working life.

The main difference between a workplace pension and a SIPP (Self-Invested Personal Pension) is control and choice over investments.

A workplace pension is managed by your employer or a pension provider chosen by them, and you often have fewer choices in how the money is invested.

With a SIPP, you have full control over your investments. You can choose from a wide range of options, such as stocks and shares, bonds, and funds. However, this type of investing also requires some knowledge about financial markets, and there is a risk that investments may not perform as well as expected, which could affect your retirement income. 

Some SIPPs come with investment options which make it easy for anybody to get started, even if they don't have knowledge about financial markets. For example, with an Aviva SIPP, you can choose from a range of investment options, from novice to pro.

Yes, you can have both a SIPP and a workplace pension.

You can contribute to a workplace pension to benefit from your employer’s contributions while also managing a SIPP if you're looking for more control for your retirement. It's also worth seeing whether paying more into your workplace pension will mean your employer contributes more too. Remember, it's important to be aware of the annual and lifetime limits on pension contributions to avoid tax charges. 

Taxation depends on your individual circumstances and may change in the future.

Transferring from a workplace pension to a SIPP is possible, but you should first check with your employer to ensure it won’t affect their contributions. This might be considered if you want more control over your investments or if you’re changing jobs and want to consolidate your pensions.

However, it’s important to check if there are any fees or if you would lose any valuable benefits by transferring your pension. If you're unsure you should speak to an Aviva financial adviser. Alternatively you can find an independent financial adviser unbiased.co.uk. You will have to pay for this advice.

If you’re self-employed, workplace pensions are not an option because there is no employer to set up or contribute to the pension.

Therefore, a SIPP could be a good option. It lets you choose how much to contribute, which may be helpful for people with a variable income, and also benefits from tax relief on contributions, similar to workplace pensions.