If you want more control over how your workplace retirement savings are invested, a group self-invested personal pension (GSIPP) could be worth considering. Here, we’ll explain what a group SIPP is, how they work, the rules, and which group SIPP providers could be right for you or your business.
What is a group SIPP?
It’s a type of workplace pension in which an employer offers employees access to a self-invested personal pension (SIPP) through a group arrangement. Each employee has their own individual SIPP under the group umbrella, but the scheme is set up and facilitated by the employer.
Unlike standard workplace pensions, which often have limited investment options, group SIPPs can be more flexible and allow members to choose from a much wider range of investments. This can include shares, funds, ETFs, investment trusts, and sometimes even commercial property.
How do they work?
A group SIPP works similarly to other defined contribution (DC) workplace pensions, but with more investment freedom:
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An employer sets up a group SIPP arrangement with a pension provider.
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Employees join the scheme and open their own individual SIPPs.
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Employer and employee contributions are paid into each member’s SIPP.
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Each member chooses how their pension is invested.
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At retirement, members decide how and when to access their pension.
Group SIPPs are often used alongside salary sacrifice arrangements, which can improve tax efficiency for both employers and employees.
They’re commonly utilised by senior employees, directors, and higher earners who want more flexibility and control over their pension investments while still benefiting from employer contributions.
Group SIPP rules
Group SIPPs follow the same core rules as other UK DC pensions:
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Contributions count towards your annual allowance (£60,000 or 100% of your salary, unless you use carry forward).
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Access to funds in your SIPP is usually from age 55 (rising to 57 from 2028).
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Up to 25% of the pension can typically be taken tax-free (£268,275 maximum based on current rules).
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After your tax-free lump sum, withdrawals are treated and taxed as income.
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Investments grow free from UK dividend and capital gains tax (CGT).
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From 6 April 2027, pension pots will possibly be subject to inheritance tax (IHT) on death.
While the pension rules are the same as an individual SIPP, employers may set additional rules around eligibility, contribution levels, or who the scheme is aimed at (for example, directors or senior staff only).
Why choose this type of pension?
A group SIPP is an attractive workplace benefit if you want:
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More control over how your pension is invested.
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Access to a wider range of investments than a standard pension.
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Greater transparency over charges and investment performance.
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Flexible ways to access your pension and drawdown in retirement.
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A workplace pension that can align with more complex financial planning.
For employers, group SIPPs can be a valuable benefit for attracting and retaining senior talent, particularly where flexibility and tax efficiency are key priorities.
How to open a group SIPP
Opening a group SIPP is usually done at the employer level, rather than by individual employees acting alone, and the process typically involves:
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Choosing a suitable group SIPP provider.
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Deciding which employees will be eligible.
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Setting contribution structures (including any salary sacrifice).
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Enrolling members and setting up individual SIPPs.
Because group SIPPs can be more complex, they’re best organised through an independent financial adviser.
An adviser can help ensure the scheme is set up correctly, compliant with pension rules, and suitable for both the business and its employees. They can also advise on pension transfers and consolidations.
If you’d like to speak to an independent, FCA-regulated pension adviser who can help you set up or join a group SIPP, you can get started below.
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Pros and cons of group SIPPs
Here’s a brief overview of the key advantages and disadvantages of group SIPPs:
Advantages
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Greater investment choice and flexibility
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Suitable for experienced investors or those working with an adviser
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Can be combined with salary sacrifice for tax efficiency
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Attractive benefit for directors and senior employees
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Clear individual ownership of pension pots
Disadvantages
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More complex than standard workplace pensions
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May involve higher fees than certain auto-enrolment schemes
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Not always suitable for less experienced investors
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Usually requires financial advice to set up and manage effectively
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Not all employers are willing or able to offer them
UK group SIPP providers
Several well-known pension providers in the UK offer group SIPPs or group SIPP-style arrangements, including:
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Standard Life
However, the best group SIPP provider for your company depends on factors such as investment choice, charges, administration, employer support, and whether advice is required as part of the arrangement.
Group SIPP vs group personal pension
Here are the key differences side-by-side of a group personal pension versus a group SIPP:
|
Feature |
Group SIPP |
Group Personal Pension |
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Pension type |
Workplace arrangement using individual SIPPs |
Standard workplace DC pension |
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Investment choice |
Very wide (shares, ETFs, funds, investment trusts, sometimes commercial property) |
Usually limited to a selection of funds chosen by the provider |
|
Level of control |
High – members choose and manage their own investments (or use an adviser) |
Low – typically default or model portfolios |
|
Suitable for |
Directors, senior staff, higher earners, experienced investors and novices using advice |
Most employees, especially those wanting a simple, hands-off option with less flexibility |
|
Fees |
Can be higher, but not always |
Usually, a simple fee structure |
|
Advice |
Commonly recommended and sometimes required |
Often not required |
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Salary sacrifice compatible |
Yes |
Yes |
|
Employer availability |
Fewer employers offer group SIPPs |
Group personal pensions are more common |
|
Transfers |
Often easier if you need an in-specie transfer to transfer investments directly |
Available but usually need to cash out investments first |
A Group SIPP offers significantly more flexibility and control, but sometimes with added complexity and cost.
It’s often possible to transfer an existing personal pension or group personal pension into a group SIPP, provided the scheme rules allow it and no valuable guarantees are lost. This is useful for employees who want to consolidate pensions and gain greater investment freedom within a workplace structure.
Speak to an independent pension adviser
For the right individuals and businesses, group SIPPs can be a powerful retirement planning tool. An independent, FCA-regulated pension adviser can help you decide whether a group SIPP is appropriate, compare providers, and ensure the scheme is structured in a tax-efficient and compliant way.
Here’s why companies and employees trust Money Helpdesk to help them arrange group SIPPs:
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Our advisers are independent, giving you the widest options
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Free initial pension chat with no obligation to proceed further
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Get tailored advice based on your company’s goals
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Access to pension specialists with diverse investment and tax knowledge
If you’d like a free, no-obligation chat with a qualified FCA-regulated pension expert about group SIPPs, you can get started here.
FAQs
Yes, a group SIPP is still a personal pension, so the same access rules apply. You can normally start taking benefits from age 55 (rising to 57 in 2028), with up to 25% available tax-free and the rest taxed as income. However, your exact options and drawdown capabilities will depend on your group SIPP provider.