Private pension or LISA?

FinanceNovice91

Hi all,

I’m turning 30 this year and want to give some thought to planning for my retirement. I joined the civil service a year ago and enrolled straight away in the defined benefit scheme. Obviously this isn’t worth much at the moment but I intend to stay in the civil service for a while to build up a decent defined benefit pension. The CS pension can only be drawn in full at age 67 (and will likely go up) so I’m looking at alternative plans to build up a nest egg in addition to my civil service pension. 

I have circa £10k sitting in other pension pots and I’m torn between putting it gradually into a LISA over the next 3 years (£4K, £4K then £2K) or keeping it in one pension pot. Is it even possible to transfer a pension into a LISA?

I know Martin’s advice is to go for a pension instead of a LISA, but I’m looking for advice for what I should do in addition to my pension pot. I’m pretty certain I’d be able to keep the £4K a year payments up after I’d transferred in my current pension pots, so I’m thinking this would be the best option (and potentially leave me with £100k by the time in 50) but I’m keen to hear others thoughts. 

Thanks in advance 

dunstonh

LISA beats pension if you are a basic rate taxpayer.  Pension beats LISA if you are a higher rate taxpayer.    There are some minor variances but that is the main thing.
The additional pension options through the workplace may beat both.

I know Martin’s advice is to go for a pension instead of a LISA, 

Martin doesn't give advice in regulated areas.  Indeed, he usually aims to distance himself from such things.

hugheskevi

I joined the civil service a year ago and enrolled straight away in the defined benefit scheme... I have circa £10k sitting in other pension pots

Did you consider transferring them into alpha? If still within 12 months of joining you could request quotes.

The CS pension can only be drawn in full at age 67 (and will likely go up)

The CS pension can only be drawn without reduction from your State Pension age - this is currently 68 and may change in future.

Is it even possible to transfer a pension into a LISA?

No.

what I should do in addition to my pension pot.

Have you considered Added Pension and EPA in your CS pension? And S+S ISA contributions, which could later move into a pension perhaps, eg, when you are a higher rate taxpayer if you are not now?

Without knowing income, future income expectations and financial goals it is not possible to say what things should be considered.