Saving for Retirement - Help!

bermudianmark

2) SIPP's are great but only if you are experienced at investing yourself.  If you are not then you could end up loosing all your  investment.

To give you an idea, I have two personal pensions plus a SIPP- one with the People's pension which has averaged around 15% return over the last 3 years, and one with Standard life which has managed 4.5%,

I have a SIPP but its solely down to my investment choices if it performs better than the other two, this year 2021 it has already grown by around 7% and that is within a week !!, but last year overall I was down nearly 12%.  Managing the Sipp takes time which is another factor, my personal pensions don't take any time at all.

For me it makes sense to balance the risk between some managed by others and some by myself

NottinghamKnight

It would take some doing to lose all your investment in a sipp, assuming mainstream investments and not parking spaces, exotic forestry etc
A sipp can be as complicated as you want to make it, can be very cheap and can hold one multi asset fund, or hundreds or more of individual shares or otehr instruments. 

grumiofoundation

bermudianmark said:

2) SIPP's are great but only if you are experienced at investing yourself.  If you are not then you could end up loosing all your  investment.

To give you an idea, I have two personal pensions plus a SIPP- one with the People's pension which has averaged around 15% return over the last 3 years, and one with Standard life which has managed 4.5%,

I have a SIPP but its solely down to my investment choices if it performs better than the other two, this year 2021 it has already grown by around 7% and that is within a week !!, but last year overall I was down nearly 12%.  Managing the Sipp takes time which is another factor, my personal pensions don't take any time at all.

For me it makes sense to balance the risk between some managed by others and some by myself

You are aware that the performance of your investments in people’s pension and standard life pension are also down to your investment choices? (Even if you left it in the default fund this is still a choice). 

SIPP does not have to be any more work unless you want it to be. Can easily pick basically the same/very similar investments in a SIPP as in your personal pension(s) and leave this to run in the background as well. 

Alexland

NottinghamKnight said:

A sipp can be as complicated as you want to make it, can be very cheap and can hold one multi asset fund, or hundreds or more of individual shares or otehr instruments. 

L&G's SIPP only lets you choose between 5 levels of a multi asset fund with no cash balance either.

NottinghamKnight

Alexland said:

NottinghamKnight said:

A sipp can be as complicated as you want to make it, can be very cheap and can hold one multi asset fund, or hundreds or more of individual shares or otehr instruments. 

L&G's SIPP only lets you choose between 5 levels of a multi asset fund with no cash balance either.

Maybe best avoided then (until they are offering a good incentive of course....)

Alexland

NottinghamKnight said:

Maybe best avoided then (until they are offering a good incentive of course....)

They were at the time, £120 topcashback for a single £100 contribution with no minimum term. Once cashback is payable will transfer as cash into our Fidelity SIPPs to pay the capped platform fees for 2+ years

Marcon

Tantalus86 said:

Yeah there is the possibility of kids, which of course would put some strain on finances, but we wouldn't need to think about moving house at all and we would then divert some funds for pension saving into a S&S ISA or something. 

You're impressively well organised, but I think many a parent reading this comment might suggest a bit of a reality check/forward planning on what tends to be one of the major cost centres of life!

Albermarle

Alexland said:

NottinghamKnight said:

A sipp can be as complicated as you want to make it, can be very cheap and can hold one multi asset fund, or hundreds or more of individual shares or otehr instruments. 

L&G's SIPP only lets you choose between 5 levels of a multi asset fund with no cash balance either.

It is not really a SIPP at all, just a simple personal pension . I think it is quite a good offering for someone who just wants a very simple pension. It is based on L&Gs multi index funds which are already well established.

Tantalus86

Marcon said:

Tantalus86 said:

Yeah there is the possibility of kids, which of course would put some strain on finances, but we wouldn't need to think about moving house at all and we would then divert some funds for pension saving into a S&S ISA or something. 

You're impressively well organised, but I think many a parent reading this comment might suggest a bit of a reality check/forward planning on what tends to be one of the major cost centres of life!

I agree. My strategy involves placing a fair amount outside of my pension.

Are there any basic rate taxpayers that use a LISA as part of their retirement portfolio? I personally can't really see the benefit - the money is tied up later than a pension, it's more tax efficient to put it into a pension, and it wouldn't be protected from things like bankrupcy. Surely it's better to just place any cash into a pension instead?

grumiofoundation

Tantalus86 said:

Marcon said:

Tantalus86 said:

Yeah there is the possibility of kids, which of course would put some strain on finances, but we wouldn't need to think about moving house at all and we would then divert some funds for pension saving into a S&S ISA or something. 

You're impressively well organised, but I think many a parent reading this comment might suggest a bit of a reality check/forward planning on what tends to be one of the major cost centres of life!

I agree. My strategy involves placing a fair amount outside of my pension.

Are there any basic rate taxpayers that use a LISA as part of their retirement portfolio? I personally can't really see the benefit - the money is tied up later than a pension, it's more tax efficient to put it into a pension, and it wouldn't be protected from things like bankrupcy. Surely it's better to just place any cash into a pension instead?

For basic rate tax payers a lifetime ISA is more tax Efficient than a pension. (By Pension mean additional contributions that do not benefit from employer matching or salary sacrifice). 

You get the same benefit going in but lifetime ISA is completely tax free on withdrawal whereas 75% of pension contributions could be subject to to tax.