What is a SIPP and is it better than a work pension?

Read after me, Self Invested Personal Pension, aka SIPP. You can open these with an online broker or pension provider, think: Aviva, Aegon, … SIPPs provide more investment flexibility than work pensions because you can buy shares in a specific company or commercial property whereas work pensions are usually limited to a choice of funds. 

Like with all pensions, you will receive income tax-relief – for every £100 you deposit you will get a £25 top up from the government – this covers basic income tax-releif. If you're a higher-rate or additional-rate tax payer you'll have to reclaim the extra relief, we have a guide for that. 

If you are self-employed then a SIPP is the way to go and you could meet with a financial advisor to help decide where to put your money. There is also the option to open a Limited company where you become employed through that company and can set-up a pension plan. Here's a guide to moving from self-employed to Limited company. 

If you have a work pension, you may open a SIPP as an additional pension pot to make specific investments whilst gaining from tax-relief. But, it’s unlikely you would choose a SIPP over your work pension because you would miss out on employer contributions and you shouldn't say “no thanks” to free money! Plus, if your work pension is paid as a salary sacrifice the tax-relief is even higher because you avoid paying National Insurance (N.I.) as well as income tax. 

This is not professional advice! If you need some of that speak with a financial advisor.