SIPP or pay into workplace pension

GunJack

Just bear in mind, if you draw anything from a LISA before age 60 NOT to buy your first house, you'll get penalised on it all so not only wll you not get the 25% uplift, it'll also cost you some ££

adonis10

ForestBluebells wrote: »

I’m currently paying the minimum into a workplace pension and my employer is paying their minimum, I don’t think I’m going to get them to increase their contributions so when I get my pay rise this month I intend to save all additional income into retirement plans. Is it best to pay it into my work pension given there’s no additional benefits from matching or should I set up a SIPP or S&S ISA instead and pay into that? I’m 35 if that makes a difference.

I’ve been looking at Vanguard and intend to set up a S&S ISA (either LifeStrategy 80/20 or VWRL) with them anyway to build up a cash fund for retirement/later in life needs and not touch it for 30+ years but this would be accessible should I ever need it before retirement however I wasn’t sure if I should also be looking at a SIPP or LISA and couldn’t work out which is best. I’m a basic rate tax payer. I also save into a regular saver (where my money goes currently ) but I want to start splitting this between pension, and other accessible funds but not sure which is best. So which is best? SIPP, LISA, workplace pension with no additional matching, S&S ISA.... or something else?

Why would you not increase your contribution in order to trigger the highest possible e'er contribution? By not doing so you are refusing free money, effectively saying "no, I don't want that extra pay rise".

ForestBluebells

My employer is already paying the maximum they will pay into my pension so there’s no additional benefits for increasing payments to my workplace pension

adonis10

ForestBluebells wrote: »

My employer is already paying the maximum they will pay into my pension so there’s no additional benefits for increasing payments to my workplace pension

Oh ok. I asked because your OP said "I’m currently paying the minimum into a workplace pension and my employer is paying their minimum, I don’t think I’m going to get them to increase their contributions"

ForestBluebells

I meant auto enrolment amount which is also the only amount my employer will pay.

JoeCrystal

ForestBluebells wrote: »

My employer is already paying the maximum they will pay into my pension so there’s no additional benefits for increasing payments to my workplace pension

There is one benefit contributing more into your workplace pension compared to adding to a separate SIPP, fewer administrative hassle! You can always move your workplace pension scheme to a new workplace pension scheme or SIPP if needed once you leave.

ForestBluebells

I’ve had a look and if I move the fund in my workplace pension to one I prefer then the management fee goes up to 1% which is high so I think I’ll open a separate one I can control for lower fees and combine them later should I ever leave this company.

surbhi09

What would be 5% of the pension to the actual salary?

Albermarle

What would be 5% of the pension to the actual salary?

Best not to 'hijack ' other threads and start your own instead.

When you do, you need to expand on the question as in its current form it means nothing.

cloud_dog

I still believe a LISA would currently be best option for the OP. You obviously need to stop contributing to a LISA at age 50 so at that point any additional monies can be re-directed in to a pension scheme.