Self-invested personal pensions, or SIPPs, can be a good option for those looking for pension flexibility, choice and control. For some people, splitting your pension funds across more than one SIPP can seem an appealing way to boost those benefits. <\/p>
However, opening more than one SIPP can also add complexity and, potentially, higher costs when managing your pensions. There are some key advantages and disadvantages to consider if you want to open multiple SIPPs.<\/p>
A self-invested personal pension (SIPP) is a type of private pension. Like all private, or personal, pensions, SIPPs are defined contribution<\/a> (DC) pensions. This means that the money you pay into your pension is invested, and the value of your pension pot when you retire will depend on investment performance.<\/p> Unlike standard personal pensions, where the pension provider manages the investments on your behalf, with a SIPP you are in control of exactly how your pension funds are invested. This means they tend to be better for those with experience in investing. SIPPs tend to offer a wider range of investment options than regular pensions, though SIPP pension charges can be higher as a result. You can find out more about the pros and cons of SIPPs in our full guide to self-invested personal pensions<\/a>.<\/p> Yes. Just as it\u2019s fine to have both a personal pension (such as a SIPP) and a workplace pension<\/a> at the same time, you can also hold multiple SIPPs at the same time.<\/p> In theory, you can have as many personal pensions \u2013 including SIPPs \u2013 as you want. There\u2019s no legal limit. However, while there may be benefits for in having more than one SIPP, we wouldn\u2019t recommend opening too many. Doing so can make it harder to keep track of and manage your pension pots.<\/p> Yes. For example, if you have a certain amount you want to contribute towards your pension each month, you can choose to split this between 2 or more SIPPs.<\/p> However, bear in mind that there\u2019s a limit to how much you can pay in each year across all of your pension pots and still benefit from tax relief on contributions<\/a>. So, you\u2019ll need to keep an eye on this to avoid exceeding your allowance.<\/p> There are a few potential benefits of investing into more than one SIPP. How valuable these benefits are to you will depend on your personal circumstances. Benefits may include the following:<\/p> Running multiple SIPP accounts in parallel can have some disadvantages too, including the following:<\/p> The process for opening a second (or third or fourth) SIPP works in the same way as the first SIPP you open. You can find out more about different types of SIPPs, who offers them and how to open a SIPP in our full SIPP comparison guide<\/a>.<\/p> If you\u2019re tempted by the potential benefits of opening more than one SIPP but aren\u2019t sure whether it\u2019s worth it, it\u2019s sensible to seek advice from a regulated financial adviser. They\u2019ll be able to work through the pros and cons and make recommendations based on your specific circumstances.<\/p> Directories that can help you search for a regulated financial adviser based on what you\u2019re looking for include the government\u2019s MoneyHelper<\/a> website, the Society of Later Life Advisers<\/a>, The Personal Finance Society<\/a> and Unbiased<\/a>.<\/p> There are no restrictions on how much you can pay into SIPPs over your lifetime, but as it stands, you can only contribute \u00a360,000 or 100% of your annual salary each year under the current rules (but this can change based on decisions by the government).<\/p>Is it possible to have more than one SIPP?<\/h3>
Is there a maximum number of SIPPs I can have?<\/h3>
Can I pay into multiple SIPPs at the same time?<\/h3>
What are the benefits of having more than one SIPP?<\/h3>
Are there any downsides to having more than one SIPP?<\/h3>
How do I open more than one SIPP?<\/h3>
If I have multiple SIPPs, how much can I pay into each one?<\/h3>