Investing

Investing for doctors & dentists — start here.

Your NHS pension is one leg of the stool. Here's how to build the other legs, in the right order.

£20k
Annual ISA allowance
£60k
Annual pension allowance
3
Main wrappers: ISA, SIPP, GIA

The investing ladder

Step 1
Emergency fund — 3-6 months of expenses in easy-access savings, before investing anything.
Step 2
Clear high-interest debt (credit cards, personal loans) — a guaranteed "return" that beats most investments.
Step 3
Maximise employer/NHS pension contributions and use ISA allowance for tax-free growth.
Step 4
Consider a SIPP for further pension saving, especially useful for self-employed locum income.
Step 5
General Investment Account (GIA) once ISA and pension allowances are used, or for money you may need before pension age.

ISA vs SIPP

Stocks & Shares ISA

£20,000 annual allowance. Grows free of income tax and CGT. Fully accessible any time — no age restriction.

SIPP (Self-Invested Personal Pension)

Contributions get income tax relief (so a higher-rate taxpayer effectively gets 40% relief). Money is locked until at least age 55 (rising over time) — a genuine long-term commitment in exchange for the upfront relief.

What to actually invest in

The unglamorous truth

For most doctors and dentists, a low-cost, globally diversified index tracker fund (or a small number of them) held for the long term outperforms attempts to pick individual shares or time the market, once fees are accounted for.

Watch out for

Platform fees, fund ongoing charges, and dealing costs all compound over decades — see our platform comparison guide for how these stack up in practice.

FAQ

These aren't really alternatives — the NHS pension is a defined benefit scheme, not an investment pot you choose funds within. ISAs, SIPPs and GIAs are how you build wealth alongside it, particularly important if you're likely to hit the annual or lifetime pension limits.

Property can work well, but comes with leverage risk, illiquidity, and — since 2015/2016 — much less favourable tax treatment for personally-held buy-to-lets. See our property guide for the detail on structuring options.