Pension lump sum in my 50's

bitstreams

I don't have much pensions cover. I have an old company one that'll provide about 8-10K once I'm 65 (I'm 54) and I've been throwing £300 a month at a St James's Place pension for the last couple of years.

I have my own business and was thinking of chucking £30K at a pension pot, because it's an effective way of getting funds out of the business.

I've not heard good things about St James's Place recently (high fees) and I don't much like my rep. So I was thinking of putting the lump sum somewhere else and perhaps pulling the £7-8K in the St James's pot.

Is this daft - am I likely to have paid all the fees upfront. I would like to have my own view of my pension pot (a bit like online banking) rather than have some 'advisor' send me pages of gumf and insincere birthday cards.

Are there 'online' best buy tables for this sort of thing?

MallyGirl

you can only pay up to your earned income into a pension - do you earn £30k?
SJP may have exit fees which mean it is better to leave the current one, stop paying in and just start a new one.
There are various calculators around - what is best for you depends on the amounts involved. Under £50k you are probably better off with something that charges a percentage but there will come a point where a fixed fee is cheaper.

bitstreams

Thanks. I think as it's my limited company, the company can make employer contributions and the limit doesn't apply (I think the limit for employees is now 40K).

Albermarle

http://www.comparefundplatforms.com/

xylophone

Do you think that you know enough about investment to be confident in choosing your own funds?

DIY Pensions: A Simple Guide to Pensions, SIPPs & Retirement Planning
by John Edwards

https://moneytothemasses.com/saving-for-your-future/pensions/the-best-cheapest-sipps-low-cost-diy-pensions

https://monevator.com/low-cost-index-trackers/

https://www.drewberryinsurance.co.uk/pensions-advice/company-directors-pension-contributions

You could consult an Independent Financial Adviser.

https://adviserbook.co.uk/

DairyQueen

bitstreams wrote: »

I don't have much pensions cover. I have an old company one that'll provide about 8-10K once I'm 65 (I'm 54) and I've been throwing £300 a month at a St James's Place pension for the last couple of years.

I have my own business and was thinking of chucking £30K at a pension pot, because it's an effective way of getting funds out of the business.

I've not heard good things about St James's Place recently (high fees) and I don't much like my rep. So I was thinking of putting the lump sum somewhere else and perhaps pulling the £7-8K in the St James's pot.

Is this daft - am I likely to have paid all the fees upfront. I would like to have my own view of my pension pot (a bit like online banking) rather than have some 'advisor' send me pages of gumf and insincere birthday cards.

Are there 'online' best buy tables for this sort of thing?

You are not daft to move away from SJP. They are super expensive. You are also not daft to consider throwing money at pensions, especially as you have a limited company. If you take any income as salary then you can pay the annual total (if < £40k) into a pension from your personal account. You will receive personal tax relief and reduce corporation tax - win/win.

The usual thing is to take minimum income in salary (sufficient to receive NI credit) and the balance in divis. So the rest of the pension payment must be paid as an employer contribution. This will reduce corporation tax but no personal tax relief. Still very worthwhile.

Where you invest requires some research by you or engage the services of an IFA (that's an independent financial advisor, unlike SJP). The IFA may cost you a couple of grand to set-up the portfolio and approx 0.5% for ongoing management. You may prefer to DIY (cheaper) but you will need to understand the basics. This forum is an excellent source and there are recommended Investor 101 books - per xylophone's suggestion.

aj9648

MallyGirl wrote: »

you can only pay up to your earned income into a pension - do you earn £30k?
SJP may have exit fees which mean it is better to leave the current one, stop paying in and just start a new one.
There are various calculators around - what is best for you depends on the amounts involved. Under £50k you are probably better off with something that charges a percentage but there will come a point where a fixed fee is cheaper.

Sorry to hijack - but could you point me in the direction of a calculator? I am getting close to £50k in my SIPP and wondering if I should leave in Fidelity or jump ship to something else.....

Albermarle

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