u/SuspectIll4520

I am 26, in the 40% tax bracket, and saving about 50% of my net monthly income. I also have a 12-month emergency fund tucked away in a Cash ISA.

Correct me if I am wrong, but the 25% tax-free portion of a SIPP has a lifetime limit of £268,275 as of 2026 (and that could always go down). If you divide £268,275 by 0.25, you get £1,073,100.

Essentially, once you hit that £1,073,100 mark, a SIPP has the same tax efficiency as a S&S ISA, assuming I stay in the same tax bracket when I start making withdrawals. I do not really see myself living on much less during retirement, so that is a fair assumption for me.

Based on that, I am planning to only contribute enough to my SIPP to get the maximum employer match. My Monte Carlo projections suggest that should be enough to push me over the £1,073,100 cap anyway. From here on out, I am going to funnel the rest of my savings into my S&S ISA instead and max my ISA allowance first before making any further contributions to SIPP.