2nd Pension alongside DB pension

OldBeanz

noClue said:

Thanks both. I think I will go down the SIPP route. It's better for me anyway as quite similar to normal investment. If I really don't bother DIY and balancing, I can always pick a suitable multi-asset fund...

You can see the performance of the funds. You do not have to bother reclaiming tax  or waiting for it to be reclaimed which is especially useful if you breach the higher tax limits. While a smaller number of funds might be seen as a restriction there are thousands of funds to chose from which can be a challenge to manage then lifestyle if you are doing this yourself (the basis of the pension to last for 10 years until TPS not long term withdrawal until death and inheritance).
You can also make extra contributions to the TPS to draw your pension earlier.

Albermarle

To add to the naming confusion . The Vanguard SIPP , is not really a SIPP at all , as you can only choose Vanguard funds, so more like a traditional personal pension , although not quite.
In fact I think they refer to as a ' Vanguard Personal Pension (SIPP)' 

noClue

OldBeanz said:

noClue said:

Thanks both. I think I will go down the SIPP route. It's better for me anyway as quite similar to normal investment. If I really don't bother DIY and balancing, I can always pick a suitable multi-asset fund...

You can see the performance of the funds. You do not have to bother reclaiming tax  or waiting for it to be reclaimed which is especially useful if you breach the higher tax limits. While a smaller number of funds might be seen as a restriction there are thousands of funds to chose from which can be a challenge to manage then lifestyle if you are doing this yourself (the basis of the pension to last for 10 years until TPS not long term withdrawal until death and inheritance).
You can also make extra contributions to the TPS to draw your pension earlier.

I see. It's automatically for basic rate, but you have to claim it yourself for higher rate. Is it THAT complicated, or have you wait for a long time for the return to be back to you? I mean it's one more thing in the life, but hardly the worst one I guess?

So I had a look at the performance here, and can't say I am impressed! Even it's way of presentation seems complicated...they could just show actual performance rather than an expected on + smoothing?

Yes, I was thinking of paying extra into TPS to be able to withdraw earler but it doesn't really feel cost efficient to me, and i did a search here seems it is not the best option...again maths is hard to work out in this case...

noClue

Albermarle said:

To add to the naming confusion . The Vanguard SIPP , is not really a SIPP at all , as you can only choose Vanguard funds, so more like a traditional personal pension , although not quite.
In fact I think they refer to as a ' Vanguard Personal Pension (SIPP)' 

Thanks! I will not use vanguard platform to limit my choice. I could just open one on my iWeb (and get vanguard retirement if I want) but the cost for smaller sum isn't the best. I will probably look around find another platform for SIPP.

OldBeanz

noClue said:

OldBeanz said:

noClue said:

Thanks both. I think I will go down the SIPP route. It's better for me anyway as quite similar to normal investment. If I really don't bother DIY and balancing, I can always pick a suitable multi-asset fund...

You can see the performance of the funds. You do not have to bother reclaiming tax  or waiting for it to be reclaimed which is especially useful if you breach the higher tax limits. While a smaller number of funds might be seen as a restriction there are thousands of funds to chose from which can be a challenge to manage then lifestyle if you are doing this yourself (the basis of the pension to last for 10 years until TPS not long term withdrawal until death and inheritance).
You can also make extra contributions to the TPS to draw your pension earlier.

I see. It's automatically for basic rate, but you have to claim it yourself for higher rate. Is it THAT complicated, or have you wait for a long time for the return to be back to you? I mean it's one more thing in the life, but hardly the worst one I guess?

So I had a look at the performance here, and can't say I am impressed! Even it's way of presentation seems complicated...they could just show actual performance rather than an expected on + smoothing?

Yes, I was thinking of paying extra into TPS to be able to withdraw earler but it doesn't really feel cost efficient to me, and i did a search here seems it is not the best option...again maths is hard to work out in this case...

If you pay throuch an AVC then you do not need to worry as PAYE takes care of things whatever your tax rate. With a SIPP you have to sort out any higher rate tax and many SIPP providers wait up to 6 weeks to apply any tax relief from the tax office.
The cost of the extra pension in the TPS has just jumped because they have re-evaluated. My son is paying the max in over 5 years and the price increased from £600pcm to £800pcm but by 30 he will have over £13k pcm linked to cpi +1.5% payable at 68 and he could afford to take a hit if the pension age rises. Another 38 years to add to this. He may emigrate or go abroad for a few years and not miss out that much. Go to a website and cost £13K inflation proof pension which will make your eyes water.

bigadaj

Well £13k a month is a hell of a tps pension!

noClue

OldBeanz said:

noClue said:

OldBeanz said:

noClue said:

Thanks both. I think I will go down the SIPP route. It's better for me anyway as quite similar to normal investment. If I really don't bother DIY and balancing, I can always pick a suitable multi-asset fund...

You can see the performance of the funds. You do not have to bother reclaiming tax  or waiting for it to be reclaimed which is especially useful if you breach the higher tax limits. While a smaller number of funds might be seen as a restriction there are thousands of funds to chose from which can be a challenge to manage then lifestyle if you are doing this yourself (the basis of the pension to last for 10 years until TPS not long term withdrawal until death and inheritance).
You can also make extra contributions to the TPS to draw your pension earlier.

I see. It's automatically for basic rate, but you have to claim it yourself for higher rate. Is it THAT complicated, or have you wait for a long time for the return to be back to you? I mean it's one more thing in the life, but hardly the worst one I guess?

So I had a look at the performance here, and can't say I am impressed! Even it's way of presentation seems complicated...they could just show actual performance rather than an expected on + smoothing?

Yes, I was thinking of paying extra into TPS to be able to withdraw earler but it doesn't really feel cost efficient to me, and i did a search here seems it is not the best option...again maths is hard to work out in this case...

If you pay throuch an AVC then you do not need to worry as PAYE takes care of things whatever your tax rate. With a SIPP you have to sort out any higher rate tax and many SIPP providers wait up to 6 weeks to apply any tax relief from the tax office.
The cost of the extra pension in the TPS has just jumped because they have re-evaluated. My son is paying the max in over 5 years and the price increased from £600pcm to £800pcm but by 30 he will have over £13k pcm linked to cpi +1.5% payable at 68 and he could afford to take a hit if the pension age rises. Another 38 years to add to this. He may emigrate or go abroad for a few years and not miss out that much. Go to a website and cost £13K inflation proof pension which will make your eyes water.

You said he paying the max in over 5 years, I assume it's through faster accrual? Or he did additional pension and/or buy out as well? 

garmeg

bigadaj said:

Well £13k a month is a hell of a tps pension!

Must be a typo else it's a hell of an LTA charge!