Workplace Pension Question

newleaseholder

Hi there - hopefully some of you have some ideas...
I have recently started a new job and within 3 months they are meant to auto-enroll me in a workplace pension. Unfortunately details about the workplace pension have been a sketchy and I have now found out that the employer will only match a smaller % than originally thought.

My question is - can I have a workplace pension and a create a SIPP at the same time? If I do, and contribuet to my SIPP separately, can I still get tax relief?

Ideally I would like to put only the same % matched by the employer in the workplace pension and then build the rest separately.

dooable?

Albermarle

My question is - can I have a workplace pension and a create a SIPP at the same time? If I do, and contribuet to my SIPP separately, can I still get tax relief?

The simple answer is yes . Just a couple of things to think about :
There are some limits on how much tax relief you can get , but unless you are thinking about quite large annual contributions then this will not apply.
Perhaps more relevant is that it might be better to just add more to your workplace pension . Often they have competitive charges and a simple structure . If you do instead open a separate SIPP you should be clear in your mind as to why you are doing it .

newleaseholder

Albermarle wrote: »

The simple answer is yes . Just a couple of things to think about :
There are some limits on how much tax relief you can get , but unless you are thinking about quite large annual contributions then this will not apply.
Perhaps more relevant is that it might be better to just add more to your workplace pension . Often they have competitive charges and a simple structure . If you do instead open a separate SIPP you should be clear in your mind as to why you are doing it .

Thanks for th response... sort of what I was expecting...
My reason to look into a SIPP is the portability so if I don't stay in the job too long I can simply move the workplace pension to my SIPP and consolidate rather than having too many pots here and there.

xylophone

My reason to look into a SIPP is the portability

It would probably be possible to transfer your old workplace pension into a new employer's workplace pension.

https://www.pensionsadvisoryservice.org.uk/about-pensions/pensions-basics/automatic-enrolment/how-much-do-i-and-my-employer-have-to-pay

https://www.vanguardinvestor.co.uk/what-we-offer/personal-pension/personal-pension-account?cmpgn=PS1219UKPASIP0001&gclid=EAIaIQobC!!!!vGbroCT5wIVhLHtCh2NWABSEAAYASAAEgILEfD_BwE&gclsrc=aw.ds might suit you when it becomes available.

https://monevator.com/using-vanguard-lifestrategy-funds-life/

greatkingrat

newleaseholder wrote: »

Thanks for th response... sort of what I was expecting...
My reason to look into a SIPP is the portability so if I don't stay in the job too long I can simply move the workplace pension to my SIPP and consolidate rather than having too many pots here and there.

You seem to be making things more complicated for yourself than necessary. If in the future you change jobs, then by all means consider moving the workplace pension into a newly opened SIPP, or your new employers scheme, but there doesn't seem any real reason for you to have two separate schemes now.

SouthLondonUser

Bear in mind that pension contribution made via salary sacrifice make you save money on national insurance.
If you pay into a SIPP out of your post-tax income, you will get the same tax relief but you will not get national insurance back.


Also, IMHO SIPPs are only worth it after you have a few thousand pounds in them, otherwise the fixed fee which most, if not all, SIPP providers charge becomes too high compared to the amounts in the account.

cloud_dog

SouthLondonUser wrote: »

Bear in mind that pension contribution made via salary sacrifice make you save money on national insurance.
If you pay into a SIPP out of your post-tax income, you will get the same tax relief but you will not get national insurance back.

We do not know if the OP benefits from Salary Sacrifice.

SouthLondonUser wrote: »

Also, IMHO SIPPs are only worth it after you have a few thousand pounds in them, otherwise the fixed fee which most, if not all, SIPP providers charge becomes too high compared to the amounts in the account.

I think generally most SIPPs and pensions use percentage charges, not fixed price.

Another option is to consider if the OP would benefit by using a LISA for these additional retirement savings?