AVC or Savings??

Pipkin1812

Thanks again everyone. I have some savings and could probably invest £10,000 into a SIPP. Where do I go to find information on which product would be most suited for me. 

Pipkin1812

Thanks for all the advice so far. Would a £10,000 investment be sufficient and any advice on where to go for general advice in suitable products. Thank you. 

Dazed_and_C0nfused

Pipkin1812 said:

Thanks for all the advice so far. Would a £10,000 investment be sufficient and any advice on where to go for general advice in suitable products. Thank you. 

Will you earn enough in the current tax year to be eligible to make a £10k contribution (which would be £12.5k once the basic rate tax relief is added)?

I am 56 and have paid into a local government pension for 30 plus years but have worked part time for the last 20 and my membership reflects that. I am also paying £300 a month into a linked standard life avc. 

Pipkin1812

 The £10,000 would come from savings where they’re not earning much interest. I could also increase my avc contributions but unsure if this is a sound thing to do. 

NottinghamKnight

Pipkin1812 said:

 The £10,000 would come from savings where they’re not earning much interest. I could also increase my avc contributions but unsure if this is a sound thing to do. 

Yes, but you can't contribute more than you earn into a pension.

ian16527

NottinghamKnight said:

Pipkin1812 said:

 The £10,000 would come from savings where they’re not earning much interest. I could also increase my avc contributions but unsure if this is a sound thing to do. 

Yes, but you can't contribute more than you earn into a pension.

As the OP is contributing via Sal Sac does this count as earnings and restrict the amount available to invest in a SIPP?

NottinghamKnight

ian16527 said:

NottinghamKnight said:

Pipkin1812 said:

 The £10,000 would come from savings where they’re not earning much interest. I could also increase my avc contributions but unsure if this is a sound thing to do. 

Yes, but you can't contribute more than you earn into a pension.

As the OP is contributing via Sal Sac does this count as earnings and restrict the amount available to invest in a SIPP?

The savings won't count as earnings which is why I commented, they may (or may not) have enough earnings in the year to ensure that this contribution falls within their earned income. 

jamesd

ian16527 said:
As the OP is contributing via Sal Sac does this count as earnings and restrict the amount available to invest in a SIPP?

No, salary sacrifice is always treated as employer contributions so the whole after sacrifice pay is available to use. Both are added together to check against the 40k plus carry-forward annual allowance.