12 year Plan for Retirement Savings

Erik_V_EyeKing

I have a personal pension, but wanted to look at options for investments outside of that (or not).

If I could max the current ISA limit for the next 10 years, does it make sense to do it & put any excess into a range of savings accounts to act as feeders?

Or would it be better to put some/most into the existing pension?

Alistair31

Do you plan to retire “early” ?

MallyGirl

Pension tax relief (and NI if salary sacrifice) boosts your contribution significantly.
I do put some in ISAs as well to give me some flexibility on tax when in drawdown, but that is a lot lower an amount than what goes into my pension

Erik_V_EyeKing

Alistair31 wrote: »

Do you plan to retire “early” ?

Retirement plan is 65, 12 years hence.

MallyGirl wrote: »

Pension tax relief (and NI if salary sacrifice) boosts your contribution significantly.
I do put some in ISAs as well to give me some flexibility on tax when in drawdown, but that is a lot lower an amount than what goes into my pension

The tax relief does seem an unbeatable return but the downside is all eggs in one pot. Would it be worth having more than one? I've another thread running with a small pot into which I'm not currently contributing. I don't know what fee structure is in play for that, but have requested the info.

LHW99

Do you have a works pension? if so, would you get any extra from your employer if you put more in?

Erik_V_EyeKing

LHW99 wrote: »

Do you have a works pension? if so, would you get any extra from your employer if you put more in?

It's a personal pension, I'm self employed so only I & HMRC contribute.

AnotherJoe

Erik_V_EyeKing wrote: »

The tax relief does seem an unbeatable return but the downside is all eggs in one pot. Would it be worth having more than one? I've another thread running with a small pot into which I'm not currently contributing. I don't know what fee structure is in play for that, but have requested the info.

Why one pot?
If you mean one pension you could have more than one, if you mean one investment you can have more than one.

kangoora

As you are currently 53 then pension payments make a lot more sense. If you pay any higher rate tax then definitely contribute to a pension to bring you out of paying 40% tax.

As you can withdraw cash out of your pension in 2 years time then it's difficult to beat the HMRC 25% uplift to any payments made into a pension, especially if you can limit withdrawals up to your tax-free allowance. Possibly good to make some use of ISA's so you can withdraw from an ISA and up to your tax free allowance from your pension in your first years of retirement and pay no tax for a couple of years.

For example, you can make UFPLS withdrawals from a pension of £16.6k (paying no tax), then £13.4k from ISA (paying no tax) for a grand total of £30k /year tax free - as long as your ISA and pension holds up .

Just beware that taking any money from a pension above the 25% tax free limits future pension payments to £4k/year.