Pension advise

cashbackproblems

Hi All

Just need some advice as to my pension situation as I have never given it any thought:

I have just turned 29years old and been in my company scheme for a few years which pays 10% of my salary non-contributory. So far the fund is only worth £12k. Prior to this is had no pension contributions, stupidly opted out of a another non-contributory scheme :mad:

So my current company pay £450pm into an Aviva pension, in addition I have a S+S ISA where I pay £200pm and that currently is worth £22k and I hope not to touch much of this till retirement. I have been looking at a SIPP with HL, is this worth it...I am a higher rate tax payer so would I get 40% back?

I am in the process of buying my own place, so cant really increase contributions, plus they wont be matched by employer.

Is this enough? I hope to retire at 55-60 and will have no other inheritance by then.

xylophone

You can open a personal pension (including SIPP) to run alongside your company pension.

A PP / SIPP would be a "Relief at Source" type scheme (relief at 20%) so that a higher rate tax payer would need to reclaim the additional 20% via HMRC - they would probably amend the tax code on your employment income.

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

HL administration is very efficient and the charges for a modest SIPP not excessive - however, it may be cheaper to use a basic PP.

http://www.moneysavingexpert.com/savings/cheap-sipps

Have you opened a HTB ISA? Santander offer 4%

There is this from 2017 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/508117/Lifetime_ISA_explained.pdf

dunstonh

I am in the process of buying my own place, so cant really increase contributions, plus they wont be matched by employer.

So, why are you looking to pay into a pension with HL?

Is this enough? I hope to retire at 55-60 and will have no other inheritance by then.

Depends on your spending habits and location in the country. However, just talking in-general, you are not on track to achieve a 55-60 retirement age.