Updated: April 08, 2024
Group SIPPs
Want to know how a group SIPP works? Here’s everything you need to know about the pros and cons along with where to get one set up.
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If you’re exploring the various SIPPs and options for your pension, you may have come across the idea of a group SIPP (self-invested personal pension).
This guide covers everything you need to know about this type of pension. We’ll explain what a group SIPP is, where you can find suitable providers, and how to transfer a group personal pension into a SIPP.
Keep reading for all the finer details about group SIPPs or click on a link below to head straight to a section…
The following topics are covered below...
What is a group SIPP?
This is a type of self-invested personal pension where multiple SIPPs are combined under one roof. It’s sometimes referred to as a ‘workplace SIPP’ and allows groups of people, perhaps those who work at the same company or in the same family, to all hold a SIPP with the same provider.
How do they work?
Even though a group SIPP (GSIPP) involves a collection of pensions, each individual is able to manage and control their own pension, to an extent. The only thing that has to be universal is the provider under which these SIPPs are being held.
The main difference to an individual self-invested personal pension, is that with a group SIPP, contributions and payroll deductions can be organised automatically with your employer, instead of arranging everything yourself.
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Benefits and drawbacks
Here are some of the main points to consider if you’re thinking about setting up a group SIPP or enrolling in a group SIPP scheme:
Advantages
- Tax relief: along with tax relief on any direct contributions you make up until your annual allowance.
- Investment choice: a SIPP gives you greater flexibility with the types of investments you can use, which means access to unique opportunities like commercial property that can’t be invested in with other group personal pensions.
- Group purchasing power: by pooling a group of SIPPs together under one roof, you can gain access to investments that you may not have been able to qualify for with an individual SIPP. For example, unique types of REITs (Real Estate Investment Trusts).
- Less admin: although you still have control over your SIPP investment choices, the bulk of the admin is carried out on a group level, which can make your life easier.
Disadvantages
- Lack of control: although you’ll have a degree of control over your SIPP, it won’t be as comprehensive because you may be limited by the provider your group SIPP is held with.
- Complex: some of the administration will be taken care of by whoever is organising your group SIPP. But, you’ll still have to research and choose how you want to invest your pension.
- Fees: you won’t be able to shop around for the lowest fees with your SIPP and you’ll have to pay costs that will depend on the provider and types of investments the group decides on.
How to open a group SIPP
The exact process will vary depending on your financial circumstances and pension needs, but here are some universal steps you can follow to get set up with a group SIPP:
Think about your retirement goals
Before you go ahead with opening a group SIPP or signing up for one through your workplace, it’s worth thinking about your financial goals for retirement.
Using a group SIPP can be very beneficial under the right circumstances, but they’re not for everyone. It’s still a complex financial product that requires expert support and advice to set up.
Discuss your needs with an expert
If you think that a group SIPP is the right pension for you or your business, the next step is to discuss your plans with an independent financial advisor.
Talking through everything with a SIPP specialist and getting some advice tailored to your specific situation will give you clarity and ensure you’re making the right decision to use a group SIPP.
Open your group SIPP
Once you’ve settled on the idea of using a group SIPP, your independent pensions expert will be able to introduce you to the best group SIPP providers for your needs.
This could mean dealing with the cheapest platform providers, or being introduced to a company that gives you access to unique investments you won’t find elsewhere.
No matter what your retirement plans and goals are, it’s well worth discussing all of the options available with a knowledgeable expert. If you’d like to speak with an experienced independent advisor, just make an enquiry. We’ll introduce you to a skilled advisor for free.
Which providers offer these pensions?
There are plenty of group SIPP options available. But, most of them won’t be advertised or found with high-street providers and firms.
Here are some examples of providers that currently offer some form of group SIPP product:
- Alltrust – offer a ‘family/group’ SIPP option.
- Hargreaves Lansdown – have a ‘workplace’ SIPP.
- iPensions Group – can arrange a ‘platform’ SIPP to consolidate multiple SIPPs.
If you want to see the full range of group SIPP providers available to you or your business, the best path forward is to discuss your needs with an experienced independent pensions advisor.
Transferring a group personal pension into a SIPP
It is possible to transfer most types of pensions and group personal pensions into a SIPP. However, it’s best to get some expert advice before you go ahead and start trying to switch or convert existing personal pensions into a group SIPP.
If it’s a defined contribution scheme, you’ll need a formal pension transfer value from the scheme administrator or pension provider. Support from an independent pensions transfer specialist is the best way to ensure you follow the correct process and get set up with the right group SIPP for your needs.
Get matched with an independent SIPP expert
Setting up a group SIPP can be complex and confusing to organise without expert advice and support from an independent pensions specialist.
We offer a free advisor-matching service. This means we’ll quickly assess your pension needs and then pair you up with the best independent financial advisor for your circumstances.
Just call 0808 189 0463 or make an enquiry. We’ll set up a free, no obligation chat between you and your ideal pensions advisor today.
Ask A Quick Question
We can help! We know everyone's circumstances are different, that's why we work with brokers who are experts in pensions. Ask us a question and we'll get the best expert to help.
Tony Stevens
Finance Expert
About the author
Tony has worked in a vastly diverse array of areas in the pensions industry for over 20 years. Tony regularly writes for trade press, usually on topical and pensions pieces as well as acting as a judge at prestigious national events.
Tony is also a highly qualified Independent Financial Adviser in his own right. His mantra has always been “Hope for the best, but plan for the worst”, and believes that the biggest impact that an adviser can have on a client’s life journey is to take them on a journey from generally having little or no real idea of what their retirement will look like, to giving them the understanding of what their retirement looks like now, then helping them navigate a path to what they want their retirement to be.
