Private Pension Free Money

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If you are not working
You can pay up to a maximum of £2880 per person, per tax year into a SIPP

The Government then adds free money on top of this at 20%

No savings accounts are paying 20%, most are paying less than 5%

The only bad point, is that the earliest you can access the money is 55 or 57 depending on your age, due to pension rules

See link

https://www.pensionbee.com/uk

If you pay in £2880

The Government adds free money

So you receive £3600 into your pension per year

https://www.pensionbee.com/uk/pension-tax-relief-calculator

The other bad point being that money will be taxed when you take it out and you may be a higher rate taxpayer when you need it.

Yes, it you draw on the private pension while still working or are in receipt of the state pension then you will be paying tax on it (but not NI).
However, if you decide to give up work early and the private pension is your only income, you will receive it tax free up to your normal tax free amount. Even with a job and/or another pension, you would have to be going some to be a higher rate taxpayer.

25% is tax free. You don’t pay tax on all of it. You can either take the 25% tax free as a lump sum, or as part of your regular draw down.

You would hope that over the years the value would have risen to make the initial payment well worth it.

But the other bad thing is that private pensions can go down as well as up. Covid, Ukraine, Trump Tarriffs…