Worth starting SIPP ( or similar ) at 58 ?

deejaybee

58 soon, still working pseudo self-employed in the Gig economy, profits before tax around 30K p.a.


Drawing a Royal Mail pension of just over 2K per year ( from age 55) ( a DB scheme)

which is being saved as rainy day fund.


deferred FS pension due at age 65, around 5K per year if no TFLS.


Forecast to get full state pension at 66 + 7 months.


Mortgage outstanding 107K, just moved to 1.99% rate - scheduled to age 70.


No other debts or savings/investments.


Currently healthy apart from T2 diabetes , controlled by tablets, and no weight issues,


So, would like to retire before my state pension age, maybe 64/65 - majorly dependant on clearing the mortgage obviously...


Which leads me back to the post title, is a SIPP investment for 6 or 7 years too short term for equities ? Or just leave it in a cash SIPP?
or just save normally via bank accounts/ regular savers etc etc ?


Hopefully i have supplied enough info for now ?


Thanks

Dox

The crucial bit of info missing is your attitude to risk...

Albermarle

'Equities' can mean different things . If it means buying a few individual shares, that is high risk. If it means buying a fund that tracks the market, that is quite high risk . If you have a mixture of shares and bonds , say 60:40 , that is medium risk , if it is 20:80 that is quite low risk.
A 6 to 7 year time frame would make me think a medium to lower risk strategy might be more suitable .
If you just keep cash in a Sipp , I do not think it will pay interest , although you will still have some benefit from tax relief.

deejaybee

Dox wrote: »

The crucial bit of info missing is your attitude to risk...

Well, i like a gamble, but i'm talking Horses, blackjack, football etc..


I suppose if i was putting 2 or 300 a month into equities, and there was a possibility i could be wiped out, then that needs a lot more thinking about than a casual gamble. The money itself is not the main worry, that would be that the 6/7 year investment window had been and gone.

deejaybee

Albermarle wrote: »

'Equities' can mean different things . If it means buying a few individual shares, that is high risk. If it means buying a fund that tracks the market, that is quite high risk . If you have a mixture of shares and bonds , say 60:40 , that is medium risk , if it is 20:80 that is quite low risk.
A 6 to 7 year time frame would make me think a medium to lower risk strategy might be more suitable .
If you just keep cash in a Sipp , I do not think it will pay interest , although you will still have some benefit from tax relief.

Would any of the Vanguard funds be suitable for a 6/7 year time frame ?

greenglide

Are you self employed (a sole trader) or you employed by you own ltd company? "Pseudo self employed" could be used to describe either.

Albermarle

Would any of the Vanguard funds be suitable for a 6/7 year time frame ?

It is not so much whether it is Vanguard or another 'multi asset fund' . It's finding something that fits your risk profile and time frame . I would hesitate to recommend something specific as I am not an expert . Probably another poster will.

deejaybee

Hi greenglide,


I am a sole trader.

xylophone

You could consider contributing to a SIPP regarding the tax relief as "interest" and staying in cash.

https://www.hl.co.uk/pensions/sipp

deejaybee

xylophone wrote: »

You could consider contributing to a SIPP regarding the tax relief as "interest" and staying in cash.

https://www.hl.co.uk/pensions/sipp

Yes, that was something i was considering.


20% uplift.


but, potentially taxable when taking out money.

LHW99

How much do plan to put in versus how much would you draw between 64 and SPA? If you are likely to have more in the SIPP than you may need to withdraw, then some at least of the money may be in for 10 years or more, in which case investments in funds could make sense for at least a proportion.