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SIPP
A Self-Invested Personal Pension — a pension you control yourself, choosing your own investments.
A SIPP offers the same tax benefits as a workplace pension (tax relief on contributions) but gives you full control over what you invest in. This makes it possible to choose halal funds. You cannot access the money until age 57 (rising to 58).
Islamic perspective
Most scholars permit using a SIPP for halal pension saving, provided you invest only in Shariah-compliant funds. Some workplace pensions also offer a Shariah-compliant fund option.
Example
Fatima earns £40,000. She contributes £200/month to her SIPP. The government adds £50 in tax relief (basic rate), making her effective contribution £250/month. She invests it in a halal ETF.
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