Is a SIPP Really Worth It?

Why Dentists Shouldn’t Overlook This Powerful Tax Strategy

With Rachel Reeves settling into the role of Chancellor and a renewed focus on tax reform and fiscal discipline, many of our professional clients — especially dentists and business owners — are asking a familiar but more urgent question:

“Are pensions, particularly SIPPs, still worth it?”

It’s not just about financial return. It’s a question of trust:
Can I still rely on long-term, tax-efficient planning tools in a world of short-term political thinking and rising costs?

At Juniper, we help clients move beyond surface-level trends to design lives of lasting freedom. And SIPPs — while perhaps not exciting — remain one of the most powerful tools available to do just that.

What Exactly Is a SIPP — and Why Should You Care?

A Self-Invested Personal Pension (SIPP) is a type of personal pension that offers flexibility over where and how your pension money is invested. You can choose funds, build portfolios, or delegate to a model portfolio — and you benefit from the same generous tax rules as other pension schemes.

But here’s the key point: SIPPs aren’t about being clever — they’re about being disciplined.

Used well, they provide:

Immediate tax relief (20%–45%) on what you put in
Tax-free growth over decades
Access from age 55 (soon rising to 57 and then 58) with
- 25% tax-free, and
- The rest taxed at your future income rate

In other words: you put money in gross, grow it gross, and take it out in a way that you control.

It’s one of the last truly generous allowances left in the UK tax system — and one of the few ways to defer or avoid tax entirely on your earnings.

Why It’s Especially Relevant for Dentists and Business Owners

Dentists are in a unique position:

You often earn above the higher-rate threshold
You may have a limited company, which brings extra options
Your time is limited — and that makes efficient money movement essential
You may have reduced access to the NHS pension, or none at all

Let’s look at two common structures:

1. If you’re self-employed or in a partnership:

You pay income tax on your profits
A SIPP contribution reduces your taxable income
Contribute £20,000 → pay £8,000 less tax (at 40%)
That’s an instant 40% return — before any investment growth

2. If you run a limited company:

Your company can make employer contributions into your SIPP
These are an allowable business expense — reducing corporation tax
You avoid dividend tax, NI, and personal income tax

You’re extracting money from the company tax-free, growing it tax-free, and accessing it on your own terms. That’s efficiency. And it’s entirely above board.

What About the Pension Allowance and Tapering?

Under current rules, the Annual Allowance — the amount you can contribute and still receive tax relief — is £60,000 per tax year.

However, if your adjusted income exceeds £260,000, this begins to taper down to as little as £10,000.

This is where planning matters. With the right strategy:

You may be able to maximise the full allowance before taper kicks in
You might carry forward unused allowances from the previous 3 years
Company contributions are not impacted by your personal income

So even for very high earners, there’s often more room to contribute than you think.

What Happens in Retirement?

From age 57 (58 from 2028), you can begin drawing from your SIPP.

You can take:

25% tax-free (up to a lifetime cap)
The remaining 75% as flexible, taxable income

Here’s where good planning shines:
In retirement, you may no longer be earning, and your tax rate may drop — meaning you’re taking money out at 20% or less, even though you saved it at 40–45%.

That tax rate arbitrage is what makes pensions so powerful — especially if your goal is long-term income, not immediate access.

What About Inheritance?

Here’s a benefit that’s often overlooked: SIPPs are not part of your estate for inheritance tax purposes.

If you die before age 75, beneficiaries can withdraw funds tax-free
If you die after 75, they pay income tax on withdrawals at their own rate
Either way, there’s no inheritance tax

Compared to ISAs, property, or even business shares, this makes SIPPs one of the most efficient ways to pass on wealth — while keeping it flexible and under your control.

Why Some Accountants Say, “It’s Not As Good As You Think”

A few reasons:

Liquidity: Pensions are tied up until 57+ — not ideal if you need access sooner.
Rule changes: Tax policy is political. Allowances shift. Some advisers take a “wait and see” stance.
Overfocus on today: Some advice is overly short-term, especially when cashflow is tight.

But here’s the truth:

If you’re a high earner today, you will pay a lot of tax.
A pension is one of the only ways to redirect that tax into a future you control.

The Real Question Isn’t “Are SIPPs Worth It?”

It’s this:

“Do I want to keep handing over a large chunk of my earnings to HMRC every year — or would I rather build something enduring, tax-efficient, and designed around my future?”

SIPPs still work. The tax relief is real. The behavioural guardrails are valuable. And the long-term outcome — freedom, security, optionality — is what most of our clients ultimately want.

The Juniper View

At Juniper, we help you focus on what really matters. Not just tax, but time. Not just savings, but significance.

SIPPs remain one of the clearest examples of where smart financial thinking and long-term behavioural wisdom align.

You don’t need to be a tax expert. You don’t need to chase complexity.
You just need to take action — consistently and with purpose.

Next Steps

If you’re a dentist, company director, or high-earning professional — and you’re not currently using your pension allowance — you may be leaving a significant opportunity untapped.

Let’s change that.

Ready to See How a SIPP Could Work for You?

Book your next Discover Call or get in touch. We’ll show you how to make the most of today’s tax rules while building the kind of future you deserve.