Salary sacrifice - is this a good idea for me

bluenose1

crv1963 wrote: »

My reckoning, which may be misplaced; is that I would pay tax on any draw down from a SIPP in my name; with an ISA I wouldn't. It may be useful to put the 2880 pa into a SIPP for me for long term use in my dotage- invested for long term growth. Mrs CRV SIPP is a no brainer as it will be drawn up to the annual personal allowance.

Thanks, totally agree, definitely a no brainer for Mrs CRV SIPP.
Though like you I will be paying tax and up to now assumed a SIPP would be best for me for the 6.25% return. Though if not working max I can contribute is £2,880.
Will need to read up on ISAs now. The more I read the less I know!!!

AlanP_2

bluenose1 wrote: »

Thanks, totally agree, definitely a no brainer for Mrs CRV SIPP.
Though like you I will be paying tax and up to now assumed a SIPP would be best for me for the 6.25% return. Though if not working max I can contribute is £2,880.
Will need to read up on ISAs now. The more I read the less I know!!!

I'm with you, SIPP has an inbuilt 6.25% advantage over ISA if BR tax in and out. Access age, contribution limits etc need to be considered as well.

Peter314

kaycastle wrote: »

... My salary is £38900, and I also have a student loan to pay back...

I haven't seen any comment on this in a quick trawl through the thread, but don't forget that sal sac will also reduce the amount of student loan interest you pay each month.