A Self-invested Personal Pension (SIPP) is one of the most powerful ways for UK investors to build a retirement pot. The government tops up your contributions and your money can grow free of capital gains and dividend tax.
That’s highly attractive — so long as you’re comfortable leaving the cash untouched until later life.
SIPP vs Stocks and Shares ISA
To repeat, both SIPPs and Stocks and Shares ISAs let your investments grow without paying capital gains tax or dividend tax, but the big difference is how tax works going in and coming out.
With a SIPP, you get tax relief on contributions at your income tax rate. A basic‑rate payer only needs to put in £80 for £100 to be invested. In exchange, the money’s locked up until at least age 55. Withdrawals in retirement beyond the usual 25% tax‑free lump sum are taxed as income.
An ISA is the opposite: no tax relief on the way in, but withdrawals are completely tax‑free and you can access the money whenever you like.
Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.
Why now could be a good moment
Soon, a new tax year will begin, meaning a fresh SIPP allowance. At the same time, the FTSE 100 has recently pulled back by around 10% from record highs. The dip means quality companies are trading cheaper than they were just a few weeks ago. For a retirement investor with a 20-30-year time horizon, short‑term dips shouldn’t be feared.
Historically, markets have tended to recover from setbacks and go on to make new highs over long periods, even if the path’s bumpy.
One stock on my radar
Many FTSE 100 names such as Airtel Africa and Glencore have already enjoyed strong growth and now trade on high earnings multiples. In Gencore’s case, over 230 times earnings. They may still do well, but near‑term growth could be limited.
Informa (LSE: INF) looks a bit different. The group runs events, data services and academic publishing, and in 2024 it delivered record revenue of about £3.6bn. Adjusted earnings per share have kept growing, but 2025 statutory earnings fell sharply due to heavy non‑cash amortisation and other charges. Subsequently, its trailing price-to-earnings (P/E) ratio looks extreme, in the high hundreds.
On the road to recovery?
Looking ahead, consensus forecasts for Informa point to recovering earnings, leaving the shares on a far more down‑to‑earth forward multiple around 12.5.
Some investors worry that artificial intelligence (AI) could disrupt parts of Informa’s data and academic businesses. Others see AI as a tool to make its events and information products more valuable.
Analysts at Morgan Stanley and JP Morgan both rate the stock Overweight, with targets comfortably above today’s share price around 740p. Wider consensus 12‑month targets eye prices in the 900p-1,000p area — a potential 40%-43% gain.
But forecasts are never set in stone and the risks are evident. Event spending can drop in a recession, academic budgets are under pressure, and any disappointment on AI or earnings could keep the shares volatile.
A balanced SIPP portfolio
For UK investors thinking about a SIPP, Informa’s worth considering. But it should sit alongside steadier dividend payers and defensive stocks.
A mix of income, growth and defensive stocks are a popular way to limit risk. Dividends provide ongoing cash flow, while growth shares aim to lift the value of the pot over time.
