advice about my pension please

jem16

SJD48 wrote: »

Hardly throwing money away but actually saving a large amount for the right people.

In the OP's case - which is what is being discussed here - using anything other than his salary sacrifice Royal Mail Pension scheme is throwing money away.

No low fee SIPP or PP will make up for the loss of 12% NIC saving and whatever the employer is contributing.

jem16

nikanika0 wrote: »

I understand it's turning down good offer, but I work part-time hours with no chance being full time. I put money into S&S ISA every month, the only reason why I started this thread is that the pension acc is performing rather well in my opinion (12%) and with bit of money it may grow further.
I really can't contribute a lot on weekly basis. I'll have to look into it properly.

Simple answer - drop the S&S ISA that you pay into every month and pay into your Royal Mail salary sacrifice scheme instead.

There is absolutely no way that your ISA will make up for the loss of the 12% NIC saving and the amount your employer is contributing. The ISA would have to make an additional 17% (12% NIC plus 5% employer contributions) plus just to break even with your pension. Do you think that's going to happen?

kangoora

Sorry - but not contributing into a salary matched, salary sacrifice pension scheme is stark, raving bonkers. Especially if you are contributing anyway to an ISA as a 'pension'.

dunstonh

The purpose of suggesting a SIPP was for trackers/passive funds with fees of sub 0.2% vs a multi asset fund with 1.0%+ pa fee to the fund manager. My SIPP fee is £25 per quarter

Why would a multi-asset fund have to cost 1% a year?

However, I suggest you read the thread again. The OP is choosing not to join an occupational pension. Any individual money purchase scheme instead of that is a very bad decision.