Boosting chances of early retirement - SIPP best vehicle?

NLDS

Hi all,
Just looking for a bit of validation of my thoughts around this, or for anyone's experiences to guide me down other routes I might not have considered.

Our Scenario:
We have just come into the very fortunate position of being able to pay off our mortgage, and this has prompted a reassessment of what our plans are going forwards into retirement and for our kids' futures
We've decided the following are the top priorities (in time order, probably)
1. Help kids through uni
2. Help kids get on the housing ladder
3. Retire or semi retire as early as possible (55-60 hopefully)
4. Not just saving but having fun - A couple of big holidays over next 5 years or so, maybe a house move 5-10 years down the line (just a different location, would keep same value of house so just likely to be moving costs and limited renovations).

Planning thoughts:
I've done some calculations and I reckon we've about enough in ISAs presently (mix of cash & stocks & shares, mainly cash) to cover points 1,2,4 above. Plus some to spare for the unexpected.

So, the name of the game, I think, is simply to save enough to enable point 3.
Having done a fair bit of reading up, I think shovelling cash into SIPPs is going to be the best way to achieve this, due to the tax breaks on offer (I am a higher rate tax payer, so lots more benefit in SIPPs or pensions generally than other savings vehicles )

Other Options / potential downsides:
I have also considered putting more into my private work pension direct from payroll, however I think a SIPP may be more flexible, as I hope I will be able to choose what to put in month-by-month, rather than choosing a specific %age for the year via work payroll.

I also understand that putting money in SIPPs means I can't access it until 55. Could create an issue if we hit unexpected costs - Mitigation of that would be simply to cut down on shovelling money into SIPPs for a bit.

Question:
Am I missing anything here? Is there a better vehicle I should be looking at other than SIPPs?

Are there any factors I've not considered, that I should be looking at?

Background info:
My wife and I are 41, kids 13 and 10.
I have always maxed out on the company pension (Aviva defined contribution personal pension - I pay in up to point of company matching my payment in)
ISAs as savings to cover as commented above, no debt.

PS, I've not looked at the best investment choices and/or platforms within the SIPP - that's the next step, should we decide SIPPs are the right course of action

Thanks for reading this far, and thanks for any advice!!!!!

MallyGirl

Do you contribute to your company pension via salary sacrifice? If so then putting extra in a separate pension will lose out on the NI benefit. 
Can you really only adjust contributions to company scheme once a year? Mine is online and I can change as often as I like 
if you don't need the money before 55 then a pension beats an ISA

NLDS

Thanks, hadn't considered the ni, and yes it's salary sacrifice. I guess I am assuming it's only adjustable once per year - that's how often they invite you to re-enroll or adjust percentage, however I will check if there is a way to flex it.

Is there any benefit in SIPP over company pension as a matter of course? (Being able to choose own investments...probably a double edged sword for someone like me who has no experience)

Alexland

My employer's payroll administration allows us to adjust our sal sac contribution on one month's notice so its worth asking. My workplace pension also allows me to transfer out lump sums (up to 90% of the account valuation into my SIPP for greater choice and lower costs) but it's enough bother that I wouldn't suggest doing it too frequently. Still it's worked well to build up a very low cost SIPP while saving the NI.

kinger101

If your pension is SS, then SIPP will be inferior.  
I've posted almost ad nauseam of this, but for basic rate it's 6.25 (SIPP) versus 25% gain (SS), and for HR, 41.67 versus 46.55 % gain.  Or even 77% if annual bonus pushes you into HR.

If you dig a bit more, I suspect you'll find more choice in the Aviva scheme than your employer's default option.  Or the ability to periodically transfer into the SIPP once you've reaped the rewards of salary sacrifice.  

DT2001

SS is the best option as explained by other posters.
You need to work out your required/desired retirement income. When your pot(s) have sufficient to provide this at 55 (or 57, 58 as some expect the age to be adjusted to 10 years below SPA) bearing in mind you’ll get a boost at SPA you’ll need to work out how to fund any years before drawdown is available.
There are a couple of good threads on The Number which provide alternative ideas on what is needed and how best to get there. You’ll almost certainly find a method that suits you on those and hopefully get a few lightbulb moments (I did and it has given me peace of mind that my plans are robust, even in this weeks market!).
Good luck.

Albermarle

If you dig a bit more, I suspect you'll find more choice in the Aviva scheme than your employer's default option.

A typical Aviva workplace pension has over 200 funds to choose from , although there are probably other versions.

Also often workplace pensions are often quite cheap if the employer has negotiated a good discount .

OP - Do you have online access to the workplace pension ? You need to fully explore what it can offer before thinking about opening a new pension.

Thrugelmir

Set your objectives. Then cross your fingers that your choosen investments perform. 

NLDS

Thanks again all for comments. Definitely more research to do then... I do have online access to the Aviva pension so I'll do some prodding and poking around and ask the pensions guys at work some questions...

I do have maybe £25k sat in a savings account doing nothing, which I don't think we'll need in order to fund the significant outlays I outlined in my first post. Worth looking at a SIPP for this? Or would I be better seeing if I can put it into my existing Aviva pension and claim the tax back somehow?

Albermarle

As you know, your aviva workplace pension is set up for salary sacrifice contributions , so if you make an extra separate contribution, tax relief will not be added automatically . First step would be to talk to Aviva to see if they have a solution for this. 
In any case if you set up a separate SIPP, although basic rate tax relief would be added by them , you would have to claim back the higher rate tax relief. Probably simplest option and best financially would be to increase your salary sacrifice contributions .
Finally are you aware ( not everybody is ) that just being a higher rate taxpayer does not entitle you to unlimited higher rate relief.
You can not claim back more higher rate relief than actual 40% tax you have paid. 

Paul_Herring

NLDS said:

I also understand that putting money in SIPPs means I can't access it until 55.

[...]
My wife and I are 41,

Pessimistically, that might be 58 if the increase in accessing personal pensions happens around 2028.