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Self-Invested Personal Pension

A SIPP, or a self-invested personal pension, is a UK-registered personal pension scheme that is tax efficient. SIPPS are available to both UK residents and expatriates. Existing pension plans can be transferred to a SIPP.

The SIPP pension scheme was introduced in the UK’s Finance Act 1989. It gives you a greater degree of freedom than any other pension, especially compared to traditional pension schemes. SIPPs may also afford increased flexibility at retirement.

SIPPs can be invested in mutual funds, commercial property, corporate bonds and government bonds, Exchange Traded Funds (ETFs), cash deposits, equities, unit trusts, shares and more. SIPPs permit you direct access to stocks and shares, both in the UK and internationally.

Why choose a SIPP?

A SIPP is typically chosen because it can give you additional investment options or increased flexibility at retirement. It is a tax efficient method where the government adds to your pension relief based on your marginal rate of tax.

All SIPPs are monitored  by the UK’s Financial Conduct Authority, making it an advantageous option for UK-connected individuals.

SIPP Quick Facts

  • Investment Options


  • Maximum Pension Commencement Lump Sum (PCLS)


  • Payments within the 25% PCLS are subject to income tax


  • Flexible Retirement Benefits


  • UK tax rate applicable


  • Death benefits where member dies pre age 75

    yes, free of beneficiary tax

  • Death benefits where member dies post age 75

    yes at recipient’s marginal rate of UK income tax

  • Monitored by the FCA


Self-Invested Personal Pension FAQs

Regardless of where in the globe you reside, if you are a UK resident or a Crown employee and under 75, and if you have a spouse or civil partner who is working overseas, you are eligible for a SIPP.

You may transfer an existing pension plan into a SIPP but there may be a large charge deduction if you do.

The government adds 20% to your pension in tax relief. The higher-rate tax payer usually claims more tax relief, depending on your circumstances.

If you were a resident in the UK at any point during the past five tax years, or when you became a member of the SIPP, you may qualify for tax relief. Living overseas will limit investment options available.

You can have as many SIPPs as you want but remember that there are annual and lifetime limits for saving tax efficiently in your pensions.

The SIPP gives a Pension Commencement Lump Sum (PCLS) of up to 25% of the value of the pension fund. However, this is subject to the available Lifetime Allowance. The balance of the fund may be in line with the UK’s flexible benefit regime.

Payments above the 25% PCLS are subject to income tax while the 25% PCLS is not. If the pension scheme member lives overseas, he/she may have pay tax where they reside. The pension member may apply to pay tax in their country of residence where a treaty exists between where the member resides and the UK.

A SIPP permits mutual funds, equities, corporate and government bonds, cash deposits and UK commercial property.

Yes. A SIPP can receive transfers from both UK-registered pension schemes and overseas pension scheme.

One or more pensions can be consolidated within a SIPP.

No. SIPP benefits may only be accessed beginning age 55.

Yes. We recommend that individuals should seek appropriate advice about their pension fund.

What to Expect

At Cross Border Wealth, we offer strategic and tactical asset allocation and provide a range of investment solutions. We cater to your needs and preferences and tailor all our services to your expectations. Wherever in the world you are, we’ve got your back.

Our Approach: How We Partner With Clients

In today’s complex market and regulatory environment, we understand the continued need for innovative investment solutions and implementation expertise.

Holistic Approach to Pension Management

Assist fiduciary committees in better understanding the impact of their decisions on the sponsor’s overall balance sheet.

Risk Management

As liability management becomes a priority for the plan, our liability strategists and proprietary analytics can help plans manage toward end-game solutions.

Financial Markets

GSAM’s global team provides access to expertise across financial markets and instruments.

Regulatory Environment

Our dedicated pension strategists can help plans navigate a changing regulatory environment.

Key Differentiators

Deep bench of expertise

We draw on specialized experts including actuaries, risk managers and strategists. We also engage investment professionals spanning asset classes, including credit and rates teams with, on average, over a decade of experience.1

Strategic insights and knowledge transfer

We address our clients’ key challenges and provide timely insights on a variety of topics relevant to the pension landscape, including real-time viewpoints on market and regulatory changes, liability management perspectives and corporate finance.

Holistic implementation approach

We take a holistic approach to portfolio management and provide tailored investment strategies, with a highly curated investment approach and fiduciary mindset.

Extensive risk management

To directly align our investment process with a client's objectives, we leverage sophisticated analytics and dynamic portfolio monitoring that provide our clients with oversight throughout the investment process.

Our Process


Analyze and

Plan-specific considerations, including:

  • Investment objectives
  • Plan size and funded status
  • Materiality
  • Discount rate methodology
  • Liability sensitivities
  • Derivatives usage


Construct and

Bespoke portfolio solutions through:

  • Custom liability benchmarks
  • Liability-hedging portfolios
  • Capital allocation to external managers, where appropriate


Monitor and

Portfolio solutions, utilizing a proprietary, fully integrated risk management system, including:

  • Liability-hedging program
  • Risk exposures based on evolving market dynamics

Examples of Our Partnership with Clients

Client Description

A large multinational with pension plans in multiple jurisdictions that had taken steps to reduce the overall risk their pension plans posed to the overall organization.

Client Objective

The client was seeking a strategic partner to assist them in developing a more holistic, liability-oriented investment strategy. The client had developed a glide path and had hit a number of funded status triggers, increasing their Liability Driven Investing (LDI) allocation to approximately 60%. The client had several active long-duration fixed income managers and was seeking a completion manager to ensure the total LDI portfolio matched the client’s liability risk exposures.

GSAM Solution

GSAM was hired by the client to serve as an anchor fixed income manager. We maintained a role within the active long-duration roster and completed the LDI portfolio to a customized liability benchmark based on accounting cash flows and discount rate methodology. Since the inception of the mandate, we have served the client as a strategic partner, assisting as they work through various de-risking exercises, rebalancing between the long-duration managers based on desired target allocations, raising cash for benefit payments as needed, and serving as the Outsourced Chief Investment Officer (OCIO) for one of its international pension plans.

Client Description

A leading mobile & telecom multinational with a legacy US pension obligation representing over 50% of the organization’s market capitalization. Prior to mandate, their asset allocation was approximately 60% equities and 40% bonds.

Client Objective

The client had frozen their US pension plan to new entrants and future accruals, and was seeking support as they embarked on a large-scale pension plan restructuring with an increased focus on liability-driven investing. The client needed assistance in developing a more diversified strategic asset allocation for remaining pension plan assets, and structuring a retiree buy-out and a lump sum offer to terminated vested participants.

GSAM Solution

We worked with the client to carve out assets to use in the transaction and ran scenarios to determine the value of held bonds given a tradeoff between (a) maximizing the insurance discount and (b) hedging versus the roll-forward. In addition to managing the annuitized plan pre-transfer, and developing a derivative overlay to mitigate the market risk between the roll-forward index and the amount to be delivered to the insurer, we served as the Outsourced Chief Investment Officer (OCIO) and implemented a modernized LDI program to revamp its growth portfolio.

Client Description

A 401(k) plan looking for a full review of investment options available to its participants. At the time, the plan had approximately $500 million in assets and 19 different investment options.

Client Objective

The client had two main goals:
  1. To ensure they were providing an adequate number of choices across asset classes.
  2. To seek simplification within each asset class.

GSAM Solution

After discussing the goals and objectives with the client’s investment committee, the GSAM team advised the client to replace the growth and value style options in all asset classes with core options. They also recommended that they remove blended options, replace passive core fixed income with an active option, remove intermediate-term and long-term treasury options and move all investments to lower fee share classes. As a result, the client removed nine investment options, added a small cap core strategy, added an actively managed core bond strategy, and moved to lower fee share classes for all investments.

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