Whether you’re new to the world of group SIPPs or you’ve already invested and would like to learn more, our guide is here to help you learn all there is to know about group SIPPs. 

A group SIPP pension is not too dissimilar from a regular SIPP, but there are a few key differences you’ll have to get to grips with. From the pros and cons to finding the best providers, here’s everything you need to know.

What is a Group SIPP?

A group SIPP (also known as a Group Self Invested Personal Pension) is a number of individual SIPPs that are held together in a group. This is common in the workplace (also known as a workplace SIPP) when a number of employees join the same scheme chosen by their employer. However, although part of a group, your pension investment is an individual contract between you and the provider.

How does it differ from a regular SIPP?

Group SIPPs do everything that you would expect from a normal SIPP with the added bonus of allowing for contributions and payroll deductions from your employer. Your pension will be invested in stocks, shares and over investments, just like a regular SIPP, but your employer can choose whether or not they would like to contribute. Many employers decide to match or even exceed their employee’s monthly contributions.

Learn more in our guide to the ins and outs of SIPPs and tax.

What are the pros and cons?

You might find there is a wider range of investment choices compared with other SIPPs, such as commercial property investments, due to the greater purchasing power that comes with a group SIPP. However, it’s important that your employer ensures everyone’s interests are aligned. Even though investments are held by an individual, everyone needs to be on the same page for a group SIPP to work. Group SIPPs are also eligible for tax relief, meaning your provider will claim tax relief on your behalf and add it to your pension pot.

Should you invest in a group SIPP pension scheme?

Group SIPPs are often popular with senior management and leadership teams, by which their employers have come to an agreement to help them save for retirement. Before investing in a group SIPP pension scheme, it’s important you and your employer understand the ins and outs of the scheme, including any fees or charges involved.

Finding the best group SIPP providers

First and foremost, you should always ensure your group SIPP provider is regulated by the FCA. You can do this by searching the Financial Services Register. Always steer clear of any unregistered providers.

However, finding a trustworthy SIPP provider doesn’t have to be challenging. Despite the coverage around mis-selling, group SIPPs can offer a regulated way to prepare for your future if you follow the appropriate guidance. In fact, most notable SIPP providers offer group SIPPs. We’ve outlined some of the most popular SIPP providers around in our post ‘what makes a reliable SIPP provider?’ We’ve also included any fees and charges you might incur, take a look!

What to do if you were mis-sold a group SIPP

If you believe you were mis-sold your existing group SIPP, our SIPPs claims team is here to help. Unfortunately, it’s not uncommon for employers to be offered SIPPs that aren’t suitable for their employees. Whether you were pressured into investing or you were simply not made aware of the risks beforehand, fill out our claims assessment form to see if you’re eligible for a claim today. 

If you’d like more information, please call our team directly on 0800 849 5078 (free from landlines) or 0161 968 0768. In the meantime, browse our testimonials to see how we’ve helped other clients like you claim their hard-earned money back.