Should I Take Out A SIPP

The_Fiddler_2

I worked in the NHS for 7 years and contributed to the pension scheme. I have now worked in local government for 5 years (in Jan 09) and pay into the pension scheme. I am 38 years old. Should I take out a SIPP to supliment my pensions and if so how much should I contribute per month.

dunstonh

Should I take out a SIPP to supliment my pensions and if so how much should I contribute per month.

What are you going to use the SIPP for? shares, investment trusts, unit trusts?

Is the SIPP the most cost effective option for you? Is the SIPP the most tax efficient option for you? Does the maturity process of a SIPP match your requirements? Do you have a spouse/partner who has little or no retirement provision?

EdInvestor

You already have 2 of the best pensions around plus a state pension. Remember that all this pension income is taxable in retirement.

It would be better to place additional savings in tax free stocks and shares ISAs (which offer the same investment arrangments as a SIPP).This will offer a more efficient use of your tax allowances later.

Also, if married, make sure that your spouse is accumulating pension income up to the old age tax allowance of 10k a year.Many people make the mistake of accumulating pensions in the man's name only, meaning he eventually pays excessive tax and his wife's tax allowance is wasted.

The_Fiddler_2

To try and answer you both, I'm a single female who has used up her year's ISA allowance (half cash, half S&S) and who is looking for other tax efficient ways to save and /or invest savings for medium term and longer term.

EdInvestor

Try tax free National Savings and investment index linked certificates - 30k can go in there. Then you can use the whole S&S ISA instead of just half of it.

The_Fiddler_2

EdInvestor wrote: »

Try tax free National Savings and investment index linked certificates - 30k can go in there.

Tax free maybe, but not necessarily the best for interest rates.

Then you can use the whole S&S ISA instead of just half of it.

I can't, as I said I have a CASH ISA.

I'm looking for the best way to make my savings grow so perhaps there are other better non tax free ways.