What Sort of Split Between Workplace Pension Portfolio and S&S ISA?

MK62

A Lifetime ISA can be a useful retirement savings vehicle for someone the OP's age too.....

Wonky_Dan

Thrugelmir said:

Wonky_Dan said:

 Now I've looked into the holdings of the default plan I'm in and its mix is roughly 18% corporate bonds, 30% UK, 43% global, 4% emerging markets with an additional 4% Europe, 3% Pacific. My plan was to sell out of this default fund and recreate a global tracker with a bit more accurate weightings. 

Accurate weightings according to what or who?  What do you know that the investment manager doesn't? 

I meant more accurate when compared to the FTSE All World or similar, so exactly as Cus said not 30% UK, no corp bonds etc. 

BuildTheWall

1. 10k in S&S ISA as a second tier emergency fund. 

2. Maximise pensions first 
3. LISA
4. S&S ISA 

Novice_investor101

Im 39 & max out my pension to get the most from my employer through salary sacrifice. 

I pay into a LISA for the bonus & tax free withdrawals after 60. I pay into a stocks & shares ISA to just make my spare cash work harder & for money not allocated to retirement. 

At 50 when LISA contributions stop I’ll start ramping up my salary sacrifice into my work pension. Aiming for retirement at 60, so 21 years to go. 

I am 100% invested in equity. Mostly global trackers. 

My LISA is my riskiest in terms of holdings as there’s a single company holding, a tech fund & a US small co’s fund alongside the Vanguard global all cap. All other investments are fairly mainstream index trackers. 

Mutton_Geoff

If you pay any income tax and you're not maxing your pension contributions up to the equivalent of your annual salary or £40k then you are throwing away the tax benefit of 20, 40, 45% (60% if your salary is in the range £100k to £125k). An ISA is fine but you've already paid tax on it and why not give your investments a free leg up (via tax saving) on the way in?

Wonky_Dan

Mutton_Geoff said:

If you pay any income tax and you're not maxing your pension contributions up to the equivalent of your annual salary or £40k then you are throwing away the tax benefit of 20, 40, 45% (60% if your salary is in the range £100k to £125k). An ISA is fine but you've already paid tax on it and why not give your investments a free leg up (via tax saving) on the way in?

I'm currently putting away 8% to get the maximum match from my employer of 10%. It would be worth increasing this further then before putting further money into other investments?

Albermarle

Wonky_Dan said:

Mutton_Geoff said:

If you pay any income tax and you're not maxing your pension contributions up to the equivalent of your annual salary or £40k then you are throwing away the tax benefit of 20, 40, 45% (60% if your salary is in the range £100k to £125k). An ISA is fine but you've already paid tax on it and why not give your investments a free leg up (via tax saving) on the way in?

I'm currently putting away 8% to get the maximum match from my employer of 10%. It would be worth increasing this further then before putting further money into other investments?

What you are doing is good in that you get all the possible free money from your employer.
The advantage of putting additional money in a pension rather than an ISA is the tax benefit.
Minimum 6.25% but can be more if you either - contribute via salary sacrifice- or - you are paying any 40% tax after your current contributions - or - you maybe a non/low taxpayer in retirement ( for the first few years anyway ) .
The disadvantage is that the money is inaccessible until your mid /late fifties.