Second pension or LISA

robaber

Hello

My wife currently pays into her workplace pension. She would like to save more towards her retirement, but her workplace pension does not permit Additional Voluntary Contributions.

She has stated paying into a Cash Lisa, but now wonders if she would have been better off setting up a second pension?

She doesn't plan to withdraw any funds before retirement.

Thanks

Rob

dunstonh

but her workplace pension does not permit Additional Voluntary Contributions.

Additional Voluntary Contributions - being wary of terminology here as that terminology indicates a product type. They may be saying they don't offer an AVC. However, they may allow increased contributions into the main scheme.

She has stated paying into a Cash Lisa,

That is a bit naff unless a house purchase is due in the next year or two.

but now wonders if she would have been better off setting up a second pension?

If it is for retirement planning then a Cash LISA is completely naff. An S&S LISA may be better than a personal pension (or worse) but a Cash LISA is not aimed at retirement planning.

robaber

Okay, thanks.

Yes, it is for retirement planning.

Why is a personal pension better than a Cash LISA or a S&S LISA?

xylophone

Of which workplace pension scheme is your wife a member?

How old is your wife?

Is she a basic or higher rate tax payer?

robaber

It is called the people's pension, from BC&E.

She is 34 and a basic rate tax payer.

dunstonh

Why is a personal pension better than a Cash LISA or a S&S LISA?

Cash is unsuitable for long term planning.

A personal pension and S&S LISA are similar but certain differences which may see one or the other being most suitable. Both are better than Cash LISA.

Without knowing more details, we cant say which is best. There are various pension vs LISA guides on this site though.

ewaste

Certainly possible to set up a direct debit to add to the existing pot via the Peoples Pension website and select which funds you want to pay more into, reasonably simple website to use. One of my previous employers used it, usual basic fund choices and I believe the all in charge is 0.5% for the funds.

To contribute more:- https://thepeoplespension.co.uk/help/knowledgebase/make-personal-payments/

Copy paste of the fund options below, usual generic options. I've got a dollop in 100% in "0.5% B&CE GI (up to 100% shares)" due to my age and risk tolerance etc.

B&CE GI (up to 100% shares)
B&CE GI (up to 85% shares)
B&CE GI (up to 60% shares)
B&CE Pre Retirement
B&CE Cash
B&CE Annuity
B&CE Ethical
B&CE Shariah

More info on each fund option:- https://thepeoplespension.co.uk/investment-funds/

robaber

Thanks, that is very helpful.

It sounds like paying more into her workplace pension may be a better option for her.