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Best product - sipp/ssisa/Lisa???
Options
what7
Posts: 80 Forumite
Age 32
Salary 20k
Defined benefits pension.
I currently saved the maximum into LISA for retirement, gaining 25% bonus from the government, tax free withdrawal from 60 y.o. This product is a no brainer to me.
I am debating whether to save into sipp or ss IsA.
Sipp - 20% added in from the government, withdraw from 58 y.o, 25% lump sum tax free, all other taxable.
Ssisa - tax free from capital gain, withdraw anytime I want but no incentive from government.
Which should be my next product to save money to?
Am I saving too much money for the future???
DB pension plus state pension is 20% more than my salary now.
Salary 20k
Defined benefits pension.
I currently saved the maximum into LISA for retirement, gaining 25% bonus from the government, tax free withdrawal from 60 y.o. This product is a no brainer to me.
I am debating whether to save into sipp or ss IsA.
Sipp - 20% added in from the government, withdraw from 58 y.o, 25% lump sum tax free, all other taxable.
Ssisa - tax free from capital gain, withdraw anytime I want but no incentive from government.
Which should be my next product to save money to?
Am I saving too much money for the future???
DB pension plus state pension is 20% more than my salary now.
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Comments
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Are you employed? Do you have a Workplace pension or is your DB pension still active?I am an Independent Financial Adviser (IFA). Any posts on here are for information and discussion purposes only and should not be seen as financial advice.0
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And do you own your home?0
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What are your retirement plans? Keep working until state retirement age, a few years before or when 50?
Where will you be living when you retire? Own home, rental, sofa surfing?
With a little more information people can suggest what to look at.Mortgage started 2020, aiming to clear 31/12/2029.0 -
Sipp - 20% added in from the government, withdraw from 58 y.o, 25% lump sum tax free, all other taxable.
That is not quite correct.
Pensions get tax relief of 20%. That is the same as 25% if you treat the tax relief as a bonus. And conversely, the 25% bonus on a LISA equates to 20% if it was viewed as a tax relief.
Which should be my next product to save money to?You haven't stated your objective. pre-retirement S&S ISA. post retirement pension is the usual pecking order. But it is not a 100% rule as circumstances could vary it.
Am I saving too much money for the future???You haven't said how much you are putting aside. We are missing a lot of information that would enable us to discuss that.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Yes employed. Yes dB pension still active. Yes own home. With my low salary, I can't see myself retire before s.p age. (obv if I could, it would be great), would like to stay in my home until I can't.
Right now, just £4k LISA,0 -
So, no, you are nowhere near the point of saving too much.what7 said:Yes employed. Yes dB pension still active. Yes own home. With my low salary, I can't see myself retire before s.p age. (obv if I could, it would be great), would like to stay in my home until I can't.
Right now, just £4k LISA,I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1 -
How much £/% should I aim to save?
Why is it not enough now, because I want to retire before sp age?
If so, how much and which product should be my next option is after LISA?
SSISA OR SIPP, and how would I benefit me?0 -
Why is it not enough now, because I want to retire before sp age?
You have just £4000 put aside as additional. That isn't much.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Per year, I have £20k in there plus gain0
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How much easy access cash do you have for emergencies?
Tying up cash in LISA and SIPP is great but you cannot access (without penalty) for a long time. Might you need access before 58/60 for something?0
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