SIPP vs Workplace pension
Side-by-side comparison, when-to-use-each guide, and instant conversion. Reviewed for 2026.
Self-employed, consolidating old pots, investing beyond workplace pension limits, wanting full investment control.
All employed workers — the employer match is free money and should be maximised first.
| Aspect | SIPP | Workplace pension |
|---|---|---|
| Employer match | No | Yes (minimum 3% employer) |
| Annual allowance | £60,000 (2025-26) | Same, but employer contributions count |
| Investment choice | Full (shares, funds, ETFs, property) | Usually 5-20 fund options |
| Tax relief | Via HMRC rebate (20%+) | Via salary sacrifice (NI saving too) |
| Access age | 57 (from 2028) | 57 (from 2028) |
Frequently asked
Should I use a SIPP or my workplace pension first?
Always maximise employer match in workplace pension first — it's free money. Typical employer match: contribute 5%, employer adds 3% = 8% total vs 5% you put in. Only use a SIPP once you've maximised the employer match in your workplace scheme.
Can I have both a SIPP and a workplace pension?
Yes. Many people have a workplace pension (for employer match) plus a SIPP for additional savings and investment flexibility. Both count toward the £60,000 annual allowance.
Frequently asked questions
Should I use a SIPP or my workplace pension first?
Always maximise employer match in workplace pension first — it's free money. Typical employer match: contribute 5%, employer adds 3% = 8% total vs 5% you put in. Only use a SIPP once you've maximised the employer match in your workplace scheme.
Can I have both a SIPP and a workplace pension?
Yes. Many people have a workplace pension (for employer match) plus a SIPP for additional savings and investment flexibility. Both count toward the £60,000 annual allowance.