SIPPS explained

Taking money from your pension

Once you reach the age of 55 you can start taking an income from your SIPP, or you can choose to keep your money invested and continue to contribute to your pension pot. If you need to take an income or need access to the money in your pension, you can choose any, or a combination, of the below options.

  • If you don’t need a secure, regular income then you can continue to manage your pension fund and draw a variable income (within certain limits) directly from the SIPP. You will continue to make all investment decisions and the value of your SIPP will rise and fall depending on the performance of your investments.

    If you wish to transfer a pension to your Halifax Share Dealing SIPP from which you have already started taking benefits, please complete the Transfer In Drawdown Benefit Form (PDF, 115 KB). This form should be completed in addition to your SIPP application (for new customers only) and the relevant transfer-in form(s). If you are transferring more than one pension in drawdown please complete one form for each transfer.

    Charges will apply to your SIPP where you designate some or all of your SIPP to drawdown.

  • You can take a one-off payment from your pension or a series of lump sums, keeping the remainder of your pension invested. The first 25% is tax-free, with the remainder subject to tax at your usual rate of income tax.

  • An annuity converts your pension fund into a regular, secure income payable for the rest of your life. Choosing an annuity is an important decision to get right as, once you’ve signed up, it can’t be stopped or changed.

    For more information about your options, read our Benefits Guide (PDF, 133 KB).

Transferring to us

  • You can transfer your pension to us by completing our application pack (which includes a transfer form).

    1. Transfers usually take around 8 - 10 weeks
    2. Download our transfer form (PDF, 90.3 KB) if you already have a SIPP
    3. Return the original form by post to the AJ Bell address provided.

    Have you already started taking benefits from your SIPP? If yes, you’ll need to complete our Transfer In Drawdown Benefit Form (PDF, 115 KB) as well.

    Are you transferring a final salary pension worth more than £30,000? You’ll need to get independent financial advice and ask your IFA to sign our Financial Advice Declaration form (PDF, 53 KB).

  • If you’d like to switch your pension to the Halifax there are a number of things you’ll need to consider before starting the transfer.

    • Not all pensions are transferable - please contact your current provider first to find out if you’re able to transfer.
    • Exit and transfer fees may apply with your existing pension provider.
    • If you’re transferring funds to us from another broker we might hold a different fund class than the one you hold now. This means we may need to convert your fund into a class that can be transferred, which may be more expensive or could be cheaper. We do this to make sure your fund does not have to be sold as part of the transfer. Once the transfer is complete, we’ll make sure that you hold the cheapest fund class we have available for investment.

    If you’re transferring a final salary pension worth more than £30,000 then you will need to get independent financial advice. Your advisor will need to sign a Financial Advice Declaration form (PDF, 53 KB) before we can start the transfer.

    You may lose out on potential pension benefits with your current provider if you choose to transfer out.

    Costs vary between pension providers so it’s important to familiarise yourself with these differences. Additional charges apply for other services.

  • Transfers usually take around 8 – 10 weeks however timescales are largely dependent on how quickly your current provider responds to our requests. If we have any issues with the transfer we’ll be in touch so make sure we’ve got your up-to-date contact details.

  • We charge £60 per transferring pension up to a maximum of £300. Your existing provider may charge you transfer or closure fees so please keep this in mind when you're transferring.

  • As pension transfers can take several weeks to complete, there may be a period where you are unable to deal while the transfer is pending.

    You should also check whether your current provider only allows transfers in the form of cash as you may suffer losses as a result of buying back the investments once the transfer has completed.

Tax relief

More detail on how you can benefit from tax relief.

  • If you pay tax at a higher rate than basic tax rate you can claim any further tax relief to which you are entitled via self-assessment. If you are a Scottish or Welsh taxpayer and you pay tax at a rate higher than basic rate, you will be entitled to claim further tax relief at that higher rate. If you pay tax at lower than the basic rate of tax you will still be entitled to receive tax relief at the basic rate.

  • If funds are credited to your SIPP on or before the 5th of the month, we’ll reclaim the basic-rate tax relief from HMRC and pay it as cash into your SIPP account on the 25th of the following month (this date is subject to weekends/bank holidays).

    For example, if we receive your contribution on the 1st April, we’ll pay the tax reclaim into your account on the 25th May. However, if we receive your contribution on the 6th April, we’ll pay your tax reclaim on the 25th June.

Interest rates

The Self-Invested Personal Pension (SIPP) will pay interest on any cash balance of £1 or above held in the account. Interest is accrued daily and paid gross annually in March.

Please note that the interest rate payable on our Self-Invested Personal Pension (SIPP) follows the Bank of England Base Rate. We will amend our interest rate as soon as is practically possible following a change in the base rate - the current rates that are applicable are shown below.

SIPP interest rates

SIPP Interest Rates



Interest Rate (Gross)

Interest Rate (Net)


£1 and above



Interest Rate (Gross)


Interest Rate (Net)


Useful forms

Find all our SIPP forms here and what you’ll need them for.

Send completed forms by post to the AJ Bell address provided. Alternatively you can scan original signed forms and email them. We will also accept a photograph of an original signed Additional Contribution Form. These need to be emailed to Please sign the form by hand as we can’t accept electronic signatures.

Additional Contribution Form

You will need to complete this form for all single contributions made to your SIPP. Single contributions can be made by electronic bank transfer or by cheque. The bank details to make an electronic payment are included on the confirmation page of the form.

Complete an additional contribution form

If you want to start a regular monthly contribution, you will need to complete this form and a Direct Debit Instruction (PDF, 64.5 KB).


Benefits forms and Benefits Guide

Our benefits process has been designed to give you the necessary information and time needed to make an informed choice when taking benefits from your SIPP. We have created an information page and a guide to help you.

Carry Forward Guide

Carry forward may allow you to contribute more than the annual allowance without incurring tax charges. Through carry forward, contributions that exceed the annual allowance in one tax year can use up any unused annual allowance from the previous three tax years, using the earliest tax year first.

Download guide (PDF, 50.8 KB)

Direct Debit Instruction

If you want to start a regular monthly contribution, you’ll need to complete a Direct Debit Instruction form. You will also need to complete an Additional Contribution Form stating the amount you want us to take on a monthly basis.

Download form (PDF, 61.7 KB)

Expression of Wishes form

One of the benefits offered by your pension is the ability for the funds held in your SIPP to be passed on to others after your death. Your expression of wishes helps us to decide who you would like to pass those funds on to after your death.

Download form (PDF, 63.0 KB)

Understanding the risks

The main aim of any pension scheme is to provide you with an income during retirement. There are three areas in which your decisions will affect the benefits you are able to receive from your SIPP.

  • By transferring benefits into your SIPP from another pension provider, you may give up the right to guarantees over the kind of benefits, the amount you will receive and the level of increases that will be applied to your pension in future. Your existing pension provider may apply a penalty, or other reduction in the value of your benefits, if it is transferred. There is no guarantee that you will be able to match the benefits that you give up by transferring into a SIPP.

    If you are in any doubt about the benefit of transferring, we recommend that you take advice from a suitably qualified, professional adviser before arranging the transfer.

    Your benefits will be affected by the level of contributions paid to your SIPP now and in the future. You may benefit less from investment growth if you delay the payment of contributions to your SIPP.

    If you have a smaller SIPP, it’s important to be aware that administration fees may result in costs being disproportionate to the value of your SIPP.

  • Most experts will tell you not to keep all your eggs in one basket, this is good advice as it’ll help you to reduce your risk. You'll be able to deal in a range of investments each of which carries a different type and level of risk.

    All investments involve a degree of risk. The value of the investments in your SIPP can fall as well as rise and you may not get back the full amount that you invested.

    It's extremely important to fully research stocks using sites such as our Shares Centre which gives trading news and recent trade values/amounts. Whilst research is important, do remember that past performance is no guarantee of future results.

  • If you start to take benefits earlier than you originally intended, the level of the benefits you can take may be lower than expected and may not meet your needs in retirement.

    Your SIPP may be subject to additional tax charges at the point you withdraw funds if your pension is valued at more than the Lifetime Allowance (the maximum amount you can build up in a SIPP without facing tax charges). If you take income withdrawals this may erode the capital value of your fund. If investment returns are poor and a high level of income is taken this will result in your SIPP falling in value and could result in a lower income than anticipated in the future.

    If you choose an annuity to provide your benefits, the level of income you receive is based upon the average life expectancy of someone of your age. When fixing annuity rates, providers take into account the fact that some people will die earlier than expected, effectively subsidising those who live longer. Income withdrawals paid from the SIPP do not have the benefit of such a subsidy.

    There is no guarantee that annuity rates will improve in the future. If you choose to purchase an annuity, the level of pension you receive when you purchase the annuity may be less or greater than the pension previously being paid under income withdrawal and/or the annuity you could have purchased previously.

    Having considered these risks, if you have any doubts about the suitability of the Halifax Share Dealing SIPP or you need advice, you must seek advice from a suitably qualified professional adviser.

    For more information about SIPPs, please read the Key Features Guide (PDF, 124 KB).

Want to apply for a SIPP?

AJ Bell Management Limited is the Scheme Administrator of the Halifax Share Dealing SIPP. AJ Bell Management Limited is registered in England No. 3948391. Registered Office: AJ Bell Management Limited, Building 4, Exchange Quay, Salford Quays, Manchester, M5 3EE.

Authorised and regulated by the Financial Conduct Authority and on the FCA register under FCA registration number 211468. Sippdeal Trustees Limited is a wholly owned subsidiary of AJ Bell Management Limited, registered in England No. 4050222. Registered Office: AJ Bell Management Limited, Building 4, Exchange Quay, Salford Quays, Manchester, M5 3EE. Sippdeal Trustees Limited does not conduct any regulated activities, and is, therefore, not regulated.

Dealing and stock broking administration services are provided by Halifax Share Dealing Limited. Registered in England and Wales no. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Authorised and regulated by the Financial Conduct Authority under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.