Final salery scheme thinking about sipp's

Rolandtheroadie

I am currently in a final salary scheme through my job but i want to do more for my retirement.

I've recently seen information on SIPP's and I was wondering if I could open one of these as well.

Am I right in saying that I am no longer restricted in how large my pension pot can be now? (up to 1.5 million anyways) and would it be possible for me to have a pension that pays more than 2/3rds my final salary between the 2?

I'm 21 years from retirement (planning to retire at 55).

Any information appreciated.

jem16

scotsman4th wrote: »

I am currently in a final salary scheme through my job but i want to do more for my retirement.

I've recently seen information on SIPP's and I was wondering if I could open one of these as well.

Yes you can. However why are you just looking at a SIPP? Why not a Personal Pension?

Am I right in saying that I am no longer restricted in how large my pension pot can be now? (up to 1.5 million anyways) and would it be possible for me to have a pension that pays more than 2/3rds my final salary between the 2?

That's correct.

I'm 21 years from retirement (planning to retire at 55).

Will your final salary pension allow you to retire at age 55? If it does what actuarial reduction will apply?

dunstonh

I've recently seen information on SIPP's and I was wondering if I could open one of these as well.

You can along with stakeholder pensions, personal pensions, AVCs, ISAs and buying of added years potentially.

SIPPs are typically the most expensive option and are designed for experienced investors to utilise investment options that may not be present in stakeholder and personal pensions.

Rolandtheroadie

SIPP's is more to do with the additional tax break and being master of my own destiny so to speak. I'll hopefully have the final salary scheme to fall back on anyways if all goes wrong.

With regards to 55, it's the railway pension an it's got a thing called BRASS that you pay additional contributions to let you go early.

The big penalties would be if you were to go between 50 and 55. I've not looked into the penalties recently, but I'd rather give up work and help people find stuff in Homebase than carry on working 12 hour dayshift/nightshift till I'm 65.

I could go at 60 with no penalties.