What is the difference between a SIPP and a personal pension?

A Self-Invested Personal Pension (SIPP) gives the holder greater investment flexibility than a standard personal pension — it can hold a wider range of assets, including commercial property, individual shares, and alternative investments. A standard personal pension is typically invested in a range of pre-selected funds. For most mainstream pension savers, a standard personal pension is more appropriate; SIPPs are typically appropriate for more sophisticated investors who want to make their own investment decisions.

Was I mis-sold if my pension was put into a SIPP instead of a personal pension?

Possibly. Where a SIPP was recommended when a standard personal pension (or staying in a workplace scheme) would have been more appropriate — or where the SIPP was used to hold unsuitable, high-risk, or unregulated investments — there may be grounds for a mis-selling claim. The key question is whether the SIPP product itself and/or the investments within it were suitable for you specifically.

Are SIPP charges higher than personal pension charges?

Generally, yes. SIPPs — particularly those accepting non-standard investments — typically have higher charges than standard personal pensions. These include SIPP operator charges (a flat fee and/or percentage), investment charges, and dealing charges on individual investments. If you were moved from a low-cost personal pension into a high-cost SIPP without adequate justification, the charge differential itself may be a relevant factor in a mis-selling claim.

Are standard personal pensions safer than SIPPs?

Standard personal pensions invest in regulated, diversified funds — which provides a degree of protection through diversification and the regulatory framework. SIPPs can hold unregulated, illiquid, or high-risk alternative investments. When SIPPs were used to hold assets such as storage pods, overseas property, UCIS, or green energy investments, savers were exposed to risks far beyond what a standard pension would involve.

Can I claim if I was transferred from a workplace pension into a SIPP?

Yes — this is one of the most common SIPP mis-selling patterns. Advisers sometimes recommended transferring from an employer's pension (particularly a defined benefit scheme) into a SIPP, often to invest in high-risk alternatives. Where the workplace pension offered better terms (guaranteed benefits, employer contributions, lower charges), the transfer was almost certainly unsuitable.

Can I still use a SIPP if I want investment flexibility?

Yes — SIPPs are legitimate products and are appropriate for some investors. If you are a sophisticated investor who wants to make your own investment decisions and accepts the associated risks, a SIPP may be suitable. The issue arises where SIPPs were sold to standard pension savers as vehicles for high-risk or unregulated investments, without proper explanation of the risks or proper assessment of suitability.

What should I do if I am not sure whether my SIPP was suitable?

Contact us for a free review. We assess all aspects of SIPP mis-selling — the product recommendation, the underlying investments, the charges, and the advice process — to determine whether you have a claim and what routes are available.

SIPP vs Personal Pension — Was a SIPP the Right Product for You?

Nadeem PervazSolicitor, Edward & Amaury Solicitors SRA RegulatedFirm SRA No. 800525

Nadeem Pervazis a solicitor at Edward & Amaury Solicitors, a law firm authorised and regulated by the Solicitors Regulation Authority. Content is reviewed for legal accuracy and compliance with FCA guidance and SRA conduct standards.

Published: September 2026About the firm

TL;DR — Quick Summary

▸SIPPs offer greater investment flexibility but higher charges — they are appropriate for sophisticated investors, not most mainstream savers.
▸Moving a pension into a SIPP to invest in high-risk alternatives (storage pods, overseas property, crypto) was almost always unsuitable.
▸SIPP charges are typically significantly higher than standard personal pensions — the cost difference is a relevant factor in suitability.
▸Transferring from a workplace or DB pension into a SIPP without strong justification is almost always unsuitable.
▸If a SIPP was not appropriate for you, or the investments within it were not suitable, you may have a claim.

SIPPs are legitimate pension products — but they are suitable for a relatively narrow audience. The widespread mis-selling of SIPPs occurred because advisers recommended them to mainstream pension savers as vehicles for high-risk investments that would never have been available in a standard pension. Understanding the difference between the two products is key to identifying whether you were mis-sold.

Quick Answer

If you were moved from a standard pension or workplace scheme into a SIPP, particularly to invest in high-risk alternatives — and you were a mainstream pension saver without sophisticated investment experience — that advice was likely unsuitable. Contact us for a free review.

SIPP vs Personal Pension — Side by Side

Factor	SIPP	Personal Pension
Investment choice	Wide — including shares, property, alternatives	Restricted to pre-selected fund range
Typical charges	Higher — operator + investment + dealing charges	Lower — fund AMC typically 0.5–1%
Who it suits	Sophisticated investors making own decisions	Most mainstream pension savers
Non-standard assets	Can hold (e.g. commercial property, alternatives)	Generally not available
FSCS coverage	Depends on what's held — advice FSCS £85k	Advice FSCS £85k; product depends on provider
Mis-selling risk	Higher — alternatives can be unsuitable for most	Lower — limited to standard fund range

Types of SIPP Mis-Selling

For specific types of investment that caused harm when held within SIPPs, see our guides:

Storage Pod SIPP Claims Overseas Property SIPP Claims UCIS Pension Claims Green Energy SIPP Claims Crypto & Bitcoin SIPP Claims Mini-Bond & Care Home SIPP Claims

SIPP vs Personal Pension — Was a SIPP the Right Product for You?

SIPP vs Personal Pension — Side by Side

Types of SIPP Mis-Selling

Frequently Asked Questions

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