By PaySlipCheck Editorial
· Reviewed by PaySlipCheck Editorial Standards Team
· 14 June 2026
· 5 min read
Workplace pension and SIPP (Self-Invested Personal Pension) are the two main UK pension vehicles for employees. Workplace pension is set up by your employer + captures employer match — free money you can't get elsewhere. SIPP is set up by you personally + gives you full control over investment choice + typically lower long-run fees. Neither is 'better' — the answer is layered: workplace first for match, SIPP second for additional. This guide covers the layering strategy + how to consolidate old workplace pensions into a SIPP on job change.
Verified against 4 official sources · Last reviewed 14 June 2026
SIPP additional contributions (lower fees, more control)
Additional workplace above match (if scheme is genuinely low-fee)
For self-employed workers
SIPP is your primary vehicle. No workplace scheme means no match — SIPP + relief-at-source is the only route to tax-relief-eligible pension.
For high earners crossing £100k
Both work. Sacrifice into workplace (if available) is often optimal because it also avoids the 62% taper marginal rate on the £100k-£125k slice.
SIPP provider comparison
Provider
Fees
Best for
Vanguard SIPP
0.15% + funds
£100k+ pots, index-heavy
AJ Bell SIPP
0.25% + funds
Balanced choice + app
Interactive Investor
Flat £5-15/mo
£250k+ pots
Hargreaves Lansdown
0.45% + funds
Premium service
InvestEngine
0% + ETFs only
ETF-only, small pots
On job change
Consider transferring old workplace pension into a SIPP for consolidation:
- Free transfer usually
- Lower long-run fees typical
- Wider fund choice
- Easier tracking
Don't transfer if:
- Small pot (< £5,000) — fees may exceed savings
- Guaranteed annuity rate or other special features
- You're still contributing
In short
Workplace pension for employer match (never skip). SIPP for additional contributions with lower fees. Consolidate old workplace pensions into a SIPP on job change. Self-employed: SIPP is your only tax-efficient route.
Frequently asked questions
Do I lose employer match if I open a SIPP?
No — you still get workplace match. SIPP is an additional pension account you contribute to yourself.
Which is cheaper long-run?
SIPP typically. Workplace fees are 0.3-0.7%; SIPPs are 0.15-0.45% typically.
Can I have both?
Yes — very common. Workplace for match; SIPP for extra.
What's the SIPP annual allowance?
Same as workplace — £60,000 (2026/27). Both count against your total allowance.
Should I transfer workplace to SIPP on job change?
Usually yes — free transfer + lower long-run fees. Not if pot is very small or has special features.
SIPP vs workplace pension — Workplace pension almost always wins first because of employer match (free money). SIPP is right for additional contributions beyond workplace, or when self-employed. This guide compares both.
Salary sacrifice — Salary sacrifice is the most tax-efficient UK pension contribution
Employer pension match — UK employer pension match ranges from the 3% auto-enrolment minimum to 15%+ at generous employers. Capturing full match should be your first pension priority — it's free money. This guide covers structure + negotiation.
Claim higher-rate pension relief — UK higher-rate pension tax relief above basic rate must be claimed via Self Assessment (relief-at-source schemes) or is captured automatically (net-pay/salary sacrifice). This guide covers the claim process.
NEST pension explained — NEST (National Employment Savings Trust) is the UK's default workplace pension provider set up to support auto-enrolment. This guide covers what it is, how it works, fund choices, fees, and how it compares to People's Pension + Smart Pension.
For the calculation methodology behind every figure on this page, see our
methodology. For our review and update process, see our
editorial standards.
Last reviewed: 14 June 2026.
Next review due 14 December 2026.
Disclaimer: This page provides general information based on published HMRC and gov.scot figures. It is not personal tax or financial advice. For your specific situation, please consult a qualified accountant or contact HMRC directly.