{"id":379142,"date":"2026-04-03T00:54:17","date_gmt":"2026-04-03T00:54:17","guid":{"rendered":"https:\/\/www.newsbeep.com\/ie\/379142\/"},"modified":"2026-04-03T00:54:17","modified_gmt":"2026-04-03T00:54:17","slug":"5-ways-to-try-and-build-a-1m-sipp","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ie\/379142\/","title":{"rendered":"5 ways to try and build a \u00a31m SIPP"},"content":{"rendered":"

\"Mature<\/p>\n

Image source: Getty Images<\/p>\n

A Self-Invested Personal Pension (SIPP) might be the most underappreciated wealth-building tool available to UK investors. <\/p>\n

One of the main features is the tax relief. Basic rate taxpayers receive 20% relief automatically, meaning an \u00a3800 contribution arrives in your pension as \u00a31,000. <\/p>\n

Higher-rate taxpayers can claim back a further 20% through self-assessment, making that same \u00a31,000 contribution cost just \u00a3600 out of pocket. That\u2019s essentially free money, before a single investment decision is made.<\/p>\n

Let\u2019s take a look at just how valuable an SIPP can be.<\/p>\n

Running some maths<\/p>\n

The figures below show the total landing in the SIPP \u2014 including that top-up \u2014 with growth compounding monthly. Five very different routes to the same destination:<\/p>\n

1. Start young:\u00a0\u00a3500 a month at 7% annual growth: you hit \u00a31m in 37 years. Not glamorous, but completely achievable for a 25-year-old.<\/p>\n

2. Double the contribution and save a decade:\u00a0\u00a31,000 a month at 7%: \u00a31m in 28 years. Higher outlay, but nine fewer years invested.<\/p>\n

3. Invest better:\u00a0back to \u00a3500 a month \u2014 but at 10% annual growth, you get there in 29 years. Eight years faster than scenario one. Returns matter enormously.<\/p>\n

4. The longer game:\u00a0just \u00a3250 a month at 8% for 42 years produces \u00a31,030,000. Time is doing almost all the heavy lifting here.<\/p>\n

5. High contributions and sprint finish\u00a0\u00a32,000 a month at 7% reaches \u00a31m in just 20 years. The most expensive monthly commitment \u2014 but the shortest horizon.<\/p>\n

These are just a handful of realistic outcomes. However, better investors can achieve stronger returns. What\u2019s more, you can start even earlier. We opened a SIPP for my daughter at birth. It has decades to compound before it can be accessed. <\/p>\n

The obvious caveat: none of this is guaranteed. Investors need to make wise decisions. That could mean choosing the right index to track or buying a successful diversified fund. Or it might mean building a portfolio of high-potential stocks and shares.<\/p>\n

\"\"Created with Claude<\/p>\n

Where to invest?<\/p>\n

Like I said, knowing where to invest can be the hard part. Poor investments often lose money. <\/p>\n

One popular investment is the Scottish Mortgage Investment Trust (LSE:SMT<\/a>). The share price changes on a daily basis and reflects the value of the companies it owns. <\/p>\n

Scottish Mortgage \u2014 a Baillie Gifford-run investment trust<\/a> holding a mix of high-growth public and private companies \u2014 currently trades at a discount to its net asset value (NAV). <\/p>\n

That gap is interesting in itself, but the stock could push higher this year and in the years beyond. <\/p>\n

My thesis is quite simple. SpaceX makes up around 15%-16% of the entire portfolio \u2014 the largest holdings. But that\u2019s based on December\u2019s SpaceX valuation of $800bn. Elon Musk wants to take it public at $1.75trn \u2014 more than double. If that IPO goes ahead near that price, the maths suggest NAV could jump massively. And that\u2019s just from one holding.<\/p>\n

More broadly, it has a great record of picking the next big winners. Of course, nothing is guaranteed. Scottish Mortgage uses gearing \u2014 borrowed money \u2014 which amplifies losses just as readily as gains<\/a>. <\/p>\n

However, it\u2019s something worth considering for SIPP and ISA investors alike. <\/p>\n","protected":false},"excerpt":{"rendered":"Image source: Getty Images A Self-Invested Personal Pension (SIPP) might be the most underappreciated wealth-building tool available to…\n","protected":false},"author":2,"featured_media":379143,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[72,176,61,60,174,175],"class_list":{"0":"post-379142","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-ie","11":"tag-ireland","12":"tag-personal-finance","13":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/379142","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=379142"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/379142\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/379143"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=379142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=379142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=379142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}