![\"Middle-aged](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2025\/10\/Pensive-investor.jpg\")
<\/p>\n<\/p>\n
Image source: Getty Images<\/p>\n
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.<\/p>\n
That\u2019s highly attractive \u2014 so long as you\u2019re comfortable leaving the cash untouched until later life.<\/p>\n
SIPP vs Stocks and Shares ISA<\/p>\n
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.<\/p>\n
With a SIPP, you get tax relief on contributions at your income tax rate. A basic\u2011rate payer only needs to put in \u00a380 for \u00a3100 to be invested. In exchange, the money\u2019s locked up until at least age 55. Withdrawals in retirement beyond the usual 25% tax\u2011free lump sum are taxed as income.<\/p>\n
An ISA is the opposite: no tax relief on the way in, but withdrawals are completely tax\u2011free and you can access the money whenever you like.<\/p>\n
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.<\/p>\n
Why now could be a good moment<\/p>\n
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.\u00a0The 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\u2011term dips shouldn\u2019t be feared.<\/p>\n
Historically, markets have tended to recover from setbacks and go on to make new highs over long periods, even if the path\u2019s bumpy.<\/p>\n
One stock on my radar<\/p>\n
Many FTSE 100 names such as Airtel Africa and Glencore have already enjoyed strong growth and now trade on high earnings multiples. In Gencore\u2019s case, over 230 times earnings. They may still do well, but near\u2011term growth could be limited.<\/p>\n
Informa (LSE: INF<\/a>) looks a bit different. The group runs events, data services and academic publishing, and in 2024 it delivered record revenue of about \u00a33.6bn. Adjusted earnings per share have kept growing, but 2025 statutory earnings fell sharply due to heavy non\u2011cash amortisation and other charges. Subsequently, its trailing price-to-earnings<\/a> (P\/E) ratio looks extreme, in the high hundreds.<\/p>\n On the road to recovery?<\/p>\n Looking ahead, consensus forecasts for Informa point to recovering earnings, leaving the shares on a far more down\u2011to\u2011earth forward multiple around 12.5.<\/p>\n Some investors worry that artificial intelligence (AI) could disrupt parts of Informa\u2019s data and academic businesses. Others see AI as a tool to make its events and information products more valuable.<\/p>\n