Retirement Advice - Start SIPP / S&S ISA?

Bitzal

Hello,

Looking for some pension/retirement advice. 31M, currently earning 44k. Annual bonus of around 5k

Pension 1: Old Company, 0 Contributions now. Global Equity FW5050 Index 3 | £22,600.00 | Charges £50 (Value increased 2k last year with 0 Contributions)
Pension 2: Current Pension - made up of 6% myself 10% company (max), 50:50 Gbl Equity Trk (Vanguard) Pn | £26,000 | Charges £92 (I actually lost 1k value on this!!)

Currently saved a mortgage deposit for a first-time buyer, actively looking for a property.
HelpToBuy ISA: £9k
E-Saver: 30k ( I know I really should of put this in proper savings account a long time ago)

I'm starting to think more about my retirement and reading up more on it. I'd love to retire early if possible so I'm looking at increasing my contributions.

I'm trying to determine if its better for me to open a SIPP or S&S ISA. If I do open a SIPP should I transfer my "Pension 1" into it and start contributing to it. From what I've read a S&S ISA is more financial freedom and people seem to favor it if retiring before 55? I'd love that but im trying to be realistic

I've also read of people taking money from there company pensions and putting it into there SIPP if their company pension fund is performing bad - is this something I should generally avoid doing?

I'm looking to contribute an additional £200-300 a month towards my retirement goals initially and increase overtime so i dont find it to impactful.

Also, live with a partner in a similar financial position to myself, we have no dependents.

Any advice would be greatly appreciated!

MallyGirl

Just because your pension dropped last year does not mean it is performing badly. Take a look at what happened to the stock market last year. A SIPP May have done the same.
Do you use salary sacrifice ?
Does your company pension allow partial transfers out?
Have you done the research to know what you would invest in within a SIPP as the SIPP itself is just a wrapper.
Does the company pension offer other choices of fund if you don’t like the default

Bitzal

Thank MallyGirl - I have got a lot to learn so excuse my ignorance on some of this please.

By Salary Sacrifice I Contribute 6% and my Company contributes 10% if that is what you refer to here? I don't do any other form of sacrifice. They do allow for bonus sacrifices every year, but previously I've not done so.

I've not researched anything in the way of which fund if I was to do it myself, as I'm still trying to grasp what would make the most sense for the best planning I can do, it would seem counterproductive to research what to invest if ultimately I need to learn more basics before even considering picking a fund.
I just checked my company pension, I do not see anything that indicates I am allowed partial transfers out, I suspect I would need to clarify that though. But it does look like I cant.

Company pension does offer the ability to select a different fund, which would then lead/force me to start researching/reading your previous point about investing in funds to see if I can understand and become knowledgeable enough to make an informed decision.

Albermarle

Company pension does offer the ability to select a different fund, which would then lead/force me to start researching/reading your previous point about investing in funds to see if I can understand and become knowledgeable enough to make an informed decision

.
As Mally girl said there is no point looking at opening new pensions when you do not understand about fund choices etc . IT could well be that your current company pension is perfectly OK and maybe even with lower charges .

From what I've read a S&S ISA is more financial freedom and people seem to favor it if retiring before 55?

It is quite a simple choice . For a basic rate taxpayer a pension is 6.25% financially better than an ISA ( invested in same funds etc) due to the tax relief . Downside is that your money is inaccessible in a pension until you are 55.
If you are a higher rate taxpayer then the calculation starts to swing heavily in favour of a pension ( depending on much actual HRT you pay )