SIPP Investment Ideas to Consider in 2023

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In 2023, self-invested personal pensions are becoming increasingly popular for their flexibility and the freedom they offer.

While workplace and ready-made private pension plans mean a more relaxed and stable way of planning for retirement, the main draw of SIPPs is the ability to pick and choose what funds to invest in, thereby deciding what kind of returns you want on the money you set aside for retirement.

In this blog, we’ll discuss why you might consider setting up a SIPP and cover some ideas for funds and strategies that might be viable for you.

Let’s get started.

What Is a SIPP?

“Simply put, a SIPP is a private pension plan where you decide what your money is invested into”

It differs from a workplace pension scheme and ready-made pension plans as you have complete control over where your money goes. With the other options, you’ll likely have little to no say in what investment funds your money is put in, but you also won’t have to worry about their performance as your money is protected by the Financial Conduct Authority (FCA for short).

SIPPs are becoming popular because of the freedom they offer. If you are willing to roll the dice, you can chase higher returns by investing in riskier funds that could grow your pension pot faster. Many self-employed people choose SIPPs to give them added freedom, as they won’t have to worry about choosing a workplace pension.

They are better suited for experienced investors, who have the knowledge and time to feel comfortable choosing and tracking their funds. Making your investments for a pension requires a lot of time and effort, for both researching what to invest in and tracking their performance over time.

You will also need to be somewhat tech-savvy because most SIPPs operate through online platforms. This means easy access to get regular updates on the past performance and growth of your plan, but also navigating a myriad of information.

Providers of SIPPs include brokers such as Vanguard and AJ Bell, who can help assist you with finding the right plan for your individual situation.

If you are considering investing in a SIPP and want independent financial advice specific to you, try contacting a financial adviser to discuss your options. This way, you can get a clearer picture of what might be right for you, and what routes you could go down.

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What Are Good Ideas For SIPP Investments?

The freedom that SIPPs offer means that you have a wide range of choices when it comes to what to put your money into.

When setting up a SIPP, try to have a diverse and balanced portfolio of funds you have invested in. This way, you can spread out your money across multiple funds, avoiding the risks of them not producing the returns you are expecting, or even failing altogether.

No investment is risk-free, so reducing the potential risks as much as possible is important. By having a range of investments in a portfolio, you reduce the risks that come with setting up your own SIPP.

Before making any investment decisions, be sure to weigh up the risks involved as well as the potential returns you could make. Everyone has a different risk tolerance they are accepting of, and when it comes to a pension plan, it is best to err on the safer side.

The last thing you want is to lose your hard-earned money that you’re setting aside for retirement. While SIPPs are protected by the Financial Services Compensation Scheme (FSCS), the amount of your money that is protected will depend on what you invest it into.

One main benefit of using a SIPP, along with any pension plan, is that money put into it is tax-free. You won’t need to pay any dividend tax, income tax or capital gains tax on funds within a SIPP.

With that in mind, here are a few ideas of investment trusts, funds and asset classes you could put money into that could make for a strong SIPP investment. Learn more about some of the recommended RWinvest long terms investments for 2023.

SIPP blocks


UK Property investment is ideally suited for those planning for retirement thanks to the low risks of physical assets combined with the high potential for long-term returns.

Given that property is a physical asset, it does not rise or fall in value quickly. It tends to perform better than other investment classes during times of financial difficulty such as Brexit or the COVID-19 pandemic. If you are looking for reasons for property investment its always useful to look at all investment options available to you.

This makes it an ideal option to add to a SIPP fund, as the higher stability means you can rest easier knowing the money set aside for your retirement is safe.

As well as this, the long-term nature of the returns from property investment is well-suited for pensions, as you will earn a passive income every month from rental income while capital appreciation will see the value of property you own grow over time. When you want to cash out, this is represented by a lump sum profit on the initial buying of the property.

It is worth noting that you’ll need to pay capital gains tax on any profits you make from selling property you own.

You can invest in property in multiple ways. Buy-to-let property is the most common, where you own properties that are rented out to tenants. This can be both residential and commercial.

SIPPs mostly invest in commercial property, renting out space to businesses to operate in return for rental income.

As well as this, you can invest in real estate investment trusts (REITs). These are investment trusts that invest in real estate, allowing you to buy and sell shares similar to stocks. This is a lower-cost alternative and the kind of investment trust that would be well-suited to add to a SIPP.  So if you are looking to invest in the Manchester property area or a SIPP, we recommend you do your research first.

For more information on how property investment performs regarding pensions, read our free guide to property vs. pensions to get a clearer picture of how they perform in comparison.

If you’re interested in property investment, we have some useful resources to help you with your venture:

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Stocks and Shares

An ever-popular option for investors of all kinds, putting money into shares on the stock market is a strong way of quickly diversifying the portfolio of a SIPP.

By investing in the stock market, you will earn dividends every year based on how well the companies you have invested in perform. This shows a regular growth in your pension pot annually, which you can track in real time.

Ideal stocks for SIPPs are high-profile companies that perform well regularly, as these are more stable and are likely to provide a consistent return of dividends. These include companies like Apple, Shell, Lloyds Banking Group and Amazon.

On the other hand, smaller companies have a higher potential for growth and more dividends, but these come with added risks of failure. Given a SIPP is intended for your golden years, it may be best to avoid this risk.

A benefit of using stocks for your SIPP is you can easily spread out your money by investing in a variety of stocks. It is best to invest in a variety of sectors, so if a major event like the cost of living crisis affects one sector majorly, it won’t cause you to lose too much money.

However, you will need to track your investments carefully and consistently, as stocks tend to react fast and sharply to market events. The value of your shares may rise fast and cause you to make a profit by selling them, or they could fall just as quickly and lead to you taking a major loss.

Despite these risks, stocks remain a core component of many SIPPS, thanks to the flexibility and diversification they offer.

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Individual Savings Accounts, or ISAs for short, are a strong method of saving money tax-free for long periods, making for an ideal addition to any SIPP.

Money deposited in ISAs is not taxed, unlike other methods and strategies mentioned on this list. Therefore they can be very useful for placing part of a SIPP in, as this gives you a safety net you can retire with.

There are four different kinds of ISAs you can open, which are:

  • Cash ISAs – which operate similarly to a regular savings account, depositing money to save over time.
  • Stocks and Shares ISAs – these act as a wrapper for investments made on the stock market. These are useful as you will otherwise pay income tax on any returns made through investing.
  • Innovative Finance ISAs – which lend your money to borrowers for a set time, a far more risky option that can see higher returns.
  • Lifetime ISAs – these are used to help with buying your first home, or for retirement. The government will pay a 25% bonus towards your savings each year.

As per information on, you have an annual allowance of £20,000 which you can deposit in ISAs, and you can set up one of each type of ISA at a time. You can only deposit up to £4000 per year in a Lifetime ISA.

Given the cap on how much you can deposit, ISAs alone are not a valid retirement plan, but as part of a SIPP, they become a very effective way of getting tax relief on some of your pension pot.

A Lifetime ISA in particular is ideally suited for this, as you will not be able to access funds from it until you are at least 60 years old, and you will make a return of 25% of what you deposit into it. Other popular Pension funds are also worth researching in order to have an in-depth understanding of what investment options are available.

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Exchange Traded Funds

Exchange-traded funds, or ETFs for short, are investment funds that operate on the stock exchange, pooling together a variety of securities from a particular market or sector to create a ready-made diverse portfolio of investments. RWinvest have put together a guide on some of the best pension funds to consider investing in.

They can contain a wide range of securities, which may include stocks, bonds or commodities. This way, the fund manager can diversify what clients invest in, helping them to be more secure than single stocks.

It is often cheaper to invest in an ETF for specific securities they cover than to individually invest in them yourself. For example, the FTSE 100 index invests in the top 100 companies listed on the London Stock Exchange. This would be a low-cost alternative to investing in these specific companies individually.

This makes them a great way of quickly diversifying a SIPP, as you can invest money into a variety of stocks or securities at a lower cost, and have a fund manager there to look after your investment rather than doing it yourself.

However, you will likely have to pay commission fees on any transactions you make, and because of the nature of ETFs, transactions can take longer than stocks.

Despite this, they make for a solid addition to any SIPP, as they offer easy diversification and stability.

We have also compiled a handy Liverpool Property Market Report offering some alternative investment insights and opportunities. This area of investment has seen a surge in Chinese investment in the UK over the past few years.

Learn More With RWInvest

With 19 years of experience in the buy-to-let property investment sector, is one of the most respected names in the industry.

We specialise in helping clients achieve financial freedom through property investment. Dedicated teams work around the clock to provide not only high-quality investment opportunities but also a professional level of care and service to ensure you feel looked after at all times of your investment journey.

While we cannot offer you a SIPP plan ourselves, we feel our buy-to-let properties for sale in hotspots like Liverpool, Manchester, and London provide excellent options for those preparing for retirement.

To learn more about the services we offer, contact us today or arrange for a member of our sales team to get in touch with you at a time of your choice.

Alternatively, the RWinvest pension investment guide offers a detailed breakdown of various methods available to you when it comes to saving for your golden years. Another popular guide available to download is the “Property Prices after Brexit” guide!

Reece Pape Property Writer

Reece Pape

Reece Pape is a property writer at RWinvest. Reece is passionate about keeping property investors updated on must-have information and housing market news, utilising the latest property market statistics and data.

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