How to Open a SIPP: Step-by-Step Setup Guide for UK Savers

By Team SalaryCalculate · 7/9/2025

A Self-Invested Personal Pension (SIPP) can be a powerful way to take control of your retirement savings — offering flexibility, tax benefits, and a wide range of investment choices. If you’ve already read What is a SIPP? and How Does a SIPP Work?, you might be ready to take the next step.

In this guide, we’ll walk you through exactly how to open a SIPP, from choosing a provider to making your first contribution.

Step 1: Decide If a SIPP Is Right for You

Before opening a SIPP, consider:

Are you comfortable making your own investment decisions?
Do you want a broader choice than traditional pension plans offer?
Are you happy managing your pension online or through a platform?

SIPPs aren’t right for everyone. If you're unsure, consider speaking to a financial adviser.

Step 2: Choose a SIPP Provider

SIPP providers vary in terms of:

Fees (platform, dealing, fund management)
Investment options (shares, funds, ETFs, etc.)
Tools and support (research tools, app access, guidance)

Some well-known SIPP platforms in the UK include:

AJ Bell
Hargreaves Lansdown
Interactive Investor
Fidelity
Vanguard (for lower-cost, fund-based investing)

Check if the platform supports the type of investments you want and compare costs based on your expected portfolio size and trading activity.

Step 3: Complete the Application Online

Most providers offer a fully online application process, typically requiring:

Personal details (name, address, National Insurance number)
Employment status
Initial contribution method (bank transfer, direct debit, pension transfer)
Nomination of beneficiaries (for death benefits)

The process usually takes around 10–20 minutes.

Step 4: Fund Your SIPP

Once your account is open, you can fund your SIPP through:

Lump sum contributions
Regular monthly payments
Transferring other pensions (optional — check transfer fees and benefits you may lose)

Contributions are eligible for tax relief, usually added automatically by the provider at the basic rate (20%). Higher-rate and additional-rate taxpayers can claim additional relief via Self Assessment.

You can learn more about the tax benefits in our article on How SIPPs Work.

Step 5: Start Investing

With funds in your SIPP, you can now choose how to invest:

Build your own portfolio of shares, funds, and other assets
Use ready-made portfolios or model portfolios (if offered)
Seek financial advice if you’re not confident choosing investments

Some providers offer "DIY" investing tools and educational resources to help beginners.

Step 6: Monitor and Review Regularly

Your SIPP needs ongoing attention:

Review performance and rebalance your portfolio periodically
Adjust contributions as your income or goals change
Stay informed about annual allowance and lifetime allowance limits (though the latter has been scrapped from April 2024)

While SIPPs offer freedom, they also place responsibility in your hands.

Common Questions When Opening a SIPP

Is there a minimum amount to open a SIPP?

Many providers have no minimum, though some require an initial contribution (e.g., £100 or more).

Can I transfer other pensions into my SIPP?

Yes, most SIPPs support transfers. Always check for exit penalties or loss of benefits from your old pension.

Do I need a financial adviser?

No — you can open and manage a SIPP on your own. But advice may help if you're unsure about investments or pension strategy.

Final Thoughts

Opening a SIPP is straightforward — but managing one requires care and confidence. If you’re comfortable taking control of your retirement savings, it can be a tax-efficient and flexible way to invest for the future.