Is SIPP the next logical step?

dantel

It seems to be from what I have read but I am curious about your thoughts.

I am 39 on 60k (about 3300 a month). Mortgage is paid (little flat, nothing special, but good enough). I am saving at least 2000 a month, so 25-30k a year. I have always maxed my annual ISA which takes half of this, the rest goes through high current and regular accounts but I have 40k saved now and the good accounts are almost full.

I have a final salary pension but AVC is not an option.

As I don't need the cash and have enough savings I am thinking of starting to put around 15k into a SIPP. I know it isn't much, but every little helps and not paying 40% tax on it when I don't need it seems to be most logical.

I looked at the various pension devices and SIPP, and not tailored personal/private pension options, are preferred for flexibility. I have experience in ETF, funds, shares from S&S ISA.

Is there a more sensible option I am missing?

Linton

From what you have said putting money into a SIPP seems a very sensible next step. It will give you 40% tax relief and could enable you to retire early without taking a reduction in your DB pension.

You may need to keep an eye on your pension lifetime allowance but it's probably not an issue at the moment.

I assume your ISA is S&S and not cash as you would seem to have more than enough to cover emergencies in your current accounts.