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  • FIRST POST
    • shilts
    • By shilts 9th Jul 17, 6:44 PM
    • 31Posts
    • 1Thanks
    shilts
    Where to put additional pension contributions ?
    • #1
    • 9th Jul 17, 6:44 PM
    Where to put additional pension contributions ? 9th Jul 17 at 6:44 PM
    I currently pay into a company pension where I pay 4.5% and my employer pays 9.5% . I have been paying into this for several years and before this I paid into my brittanic personal pension . My question is that with interest rates being so low I am considering investing £100 a month into a pension . I can add additional money into an Aviva avc through work but my employer will not add anymore to it . Or would it be better to start adding money to my brittanic policy that has lay dormant since I started paying into my company pension with approx £40000 in it . At this moment I can afford £100 a month but need the option of turning this on/off if my circumstances change . Would one of these two options be the best over starting a new pension and which would be the most tax efficient option , many thanks .
Page 1
    • number_monkey
    • By number_monkey 9th Jul 17, 7:55 PM
    • 4 Posts
    • 3 Thanks
    number_monkey
    • #2
    • 9th Jul 17, 7:55 PM
    • #2
    • 9th Jul 17, 7:55 PM
    First, I assume you've weighed up all the options of pension contributions vs saving/investing in an ISA or saving in a savings account.

    1. Check if you're even able to add additional money to your dormant policy.
    2. Find out if your company uses salary sacrifice for AVCs - this could make extra contributions cheaper for you. If so, the benefit is likely to outweigh any other option. If not, look at the funds you'd be investing in and compare annual management charges and performance. It's possible (although probably unlikely) that a SIPP could be better for you than your workplace scheme, so consider that also.

    While you're doing that, it's also worth seeing if it's worth transferring your dormant pot into your current pension or a SIPP, although make sure you're fully informed before you make any decision. For example, if you had guaranteed annuity conversion terms with your old provider, these could be very valuable.
    • shilts
    • By shilts 9th Jul 17, 8:31 PM
    • 31 Posts
    • 1 Thanks
    shilts
    • #3
    • 9th Jul 17, 8:31 PM
    • #3
    • 9th Jul 17, 8:31 PM
    Thanks for the reply . I would be the first to admit that I am rather un-trusting when it comes to knowing who to go to for the best independent advice for me . My brittanic/Phoenix pension has been growing consistently at around 7% a year since 2010 - this does not have guaranteed annuity terms and I am sure I can add further contributions . Is it possible to pay into my company pension and get the tax relief and also restart my personal pension and also get the tax relief on this also ? I assume when you say about salary sacrifice for the avc this would mean that I would get the tax relief ? Thanks .
    • AnotherJoe
    • By AnotherJoe 10th Jul 17, 9:14 AM
    • 6,917 Posts
    • 7,361 Thanks
    AnotherJoe
    • #4
    • 10th Jul 17, 9:14 AM
    • #4
    • 10th Jul 17, 9:14 AM
    Is it possible to pay into my company pension and get the tax relief and also restart my personal pension and also get the tax relief on this also ? I assume when you say about salary sacrifice for the avc this would mean that I would get the tax relief ? Thanks .
    Originally posted by shilts
    Yes, yes and yes in that order.
    • PeacefulWaters
    • By PeacefulWaters 10th Jul 17, 10:01 AM
    • 6,591 Posts
    • 8,097 Thanks
    PeacefulWaters
    • #5
    • 10th Jul 17, 10:01 AM
    • #5
    • 10th Jul 17, 10:01 AM
    Pensions payments using salary sacrifice will be the most cost efficient method.

    If your employer offers this, the emploer AVC would be my starting point.
    • shilts
    • By shilts 10th Jul 17, 8:45 PM
    • 31 Posts
    • 1 Thanks
    shilts
    • #6
    • 10th Jul 17, 8:45 PM
    • #6
    • 10th Jul 17, 8:45 PM
    Thankyou for your help . Would the employer avc be more cost effective because the charges would be lower than my personal pension ? Would the avc be held in the same fund as my company pension , thanks .
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