Can you have more than one SIPP?

Customers often ask us: ‘can I have more than 1 SIPP?’ when looking into options for funding their retirement. SIPPs, or Self Invested Personal Pensions can be a good solution for those who want to maximise flexibility and control over which funds they invest in, and for some, having multiple SIPP pensions is an attractive prospect.

In this article, we will explore:

• Can I have more than one SIPP account?
• Why take out more than one SIPP?
• Are there any disadvantages to having multiple SIPPs?
• What is the eligibility criteria for having more than one SIPP? 
• Speak to an expert on multiple SIPP pensions

Can I invest in more than one SIPP?

The short answer is yes: you can open more than one SIPP, and indeed many investors choose to hold multiple accounts. You can also open one or more SIPP accounts alongside other investment products you may have, such as workplace pensions, ISAs and more.

Regardless of how many accounts you hold you will need to ensure that you don’t exceed either your pensions lifetime allowance (currently £1,055,000) or annual allowance (£40,000) across all investments, or you will incur certain tax charges.

Why take out more than one SIPP?

There are many reasons why you might want to open more than one SIPP, and the choice will be largely driven by personal preference and perception of risk. Common reasons investors may give for opening more than one SIPP include:

• Access to different investment types: One of the main attractions of SIPPs is the ability to invest in a wide range of assets, including stocks and shares, unit trusts, cash, commercial property and more. While it is possible to hold several different investments within one platform, not all will be available with a single provider, so if you have a particularly broad portfolio, you may need to spread it across multiple platforms.
• Balancing risk: Some people simply feel more comfortable spreading their investment across multiple platforms, in case of problems at any individual provider, particularly when they have larger amounts of money to invest.

Are SIPPs protected by the FSCS?

SIPPs are protected by the FSCS up to a value of £50,000, so if you want to invest more than £50,000 and are concerned about the (relatively low) possibility of one SIPP platform failing due to fraud or some other eventuality, you might want to consider spreading your funds across more than one platform.

Are there any disadvantages to having multiple SIPP pensions?

It’s important to balance the pros and cons of opening up more than one SIPP, and there are certainly some downsides to having multiple accounts at once that you may want to consider:

• Administrative cost: having several accounts to attend to at once can be time consuming and creates more complexity, making it harder to rebalance or simply keep track of the overall health of your funds.
• Keeping track of your allowances: This can be harder with multiple accounts, and you can’t rely on any one provider to let you know when you’re sailing too close to the wind in this respect, since they don’t know what you have invested elsewhere.
• Fees and other costs: There will be management costs and other charges associated with any SIPP, so having multiple accounts will incur more fees that can quickly mount up – particularly when you decide to go into drawdown as higher charges kick in once the pension has been crystallised.

Eligibility criteria for multiple SIPPs

There is no specific eligibility criteria for opening one or more SIPP accounts other than being under 75 years of age and resident in the UK. If you’re based overseas you can still open one provided you hold a UK pension, as this can be transferred into a SIPP.

You don’t actually need to be earning any income to open a SIPP, but your workplace can contribute to your own SIPP if you are in employment. It’s also possible to open a junior SIPP on behalf of a child.

Speak to an expert on multiple SIPP pensions

Ready to kickstart your investment journey, or grow you existing portfolio? If you have further questions on multiple SIPP pensions and would like to speak to an expert about the best options for you, give us a call on 0808 189 0463 or leave us a message here, and we’ll be in touch to help you find the right advice.

We work only with accredited advisors with access to all pension providers who know the market inside-out.