How to make the most of your SIPPs and ISAs

SIPPs and ISAs both offer valuable tax advantages, and used well together they can do a lot of the heavy lifting toward retirement. Here’s how to make the most of each.

Making the most of a SIPP

• Contribute toward the annual allowance. It’s £60,000 for 2026/27 (lower for some higher earners), and contributions attract tax relief at your marginal rate.
• Contribute regularly. Monthly investing benefits from pound-cost averaging, smoothing out market ups and downs.
• Diversify. A mix of equities, bonds and other assets manages risk over the long term.
• Review periodically. Check performance against your risk tolerance and timeline, and rebalance as needed.
• Plan withdrawals. From age 57 (from 2028), drawdown lets you take income while staying invested — with tax to plan around.

Making the most of an ISA

• Use the allowance. £20,000 for 2026/27, which you can split across ISA types.
• Consider a Stocks & Shares ISA for long-term, tax-free growth potential (with investment risk).
• A Lifetime ISA (if you’re under 40 when you open it) adds a 25% government bonus on up to £4,000 a year — up to £1,000 — for a first home or later-life saving.
• Watch the fees. Platform and fund charges compound, so low-cost options help over time.

Choosing a provider

Rather than chase a “best” name, match the provider to how you’ll use the account: weigh the fee model (flat vs percentage) against your expected balance, check the range of investments offered, and consider the platform’s usability and support. Compare each provider’s current published fees before deciding — they change, and the right fit depends on your circumstances. This is general information, not a recommendation of any particular provider.

← All articles