Embarrassed 40 year old - no pension.

MX5huggy

Your choice is ex Uk, don’t know what choices you have, but I would not choose that over the the including UK version (it’ll just be called something like World Equity Index Fund or similar). While the Uk has not performed particularly well in the last 10 years I don’t see why you would exclude it as it could be best in the next 10 years. Uk is about 3% of world equities. 

MaxiRobriguez

MX5huggy said:

Your choice is ex Uk, don’t know what choices you have, but I would not choose that over the the including UK version (it’ll just be called something like World Equity Index Fund or similar). While the Uk has not performed particularly well in the last 10 years I don’t see why you would exclude it as it could be best in the next 10 years. Uk is about 3% of world equities. 

Ex-UK isn't a bad thing if OP has money tied up in company shares (assume UK based) and also has equity in a home here, and besides the UK isn't a big enough proportion of global index funds to make a huge difference either way.

I would tend to agree excluding the UK is probably sub-optimal but it's not going to be that much of a drag on performance if UK outperforms.

Op needs to concentrate on freeing up cashflow to push more into pension. He/she has 15-18 years before retirement, objective #1 has to be getting capital in ASAP in order to allow compounding to work it's magic on a bigger pot in the final few years.

sho_me_da_money

Thanks both.
My employee Shares (RSUs) are with a US company.  I like the growth prospects of FAANG and tech stocks hence why I was drawn to the pension product mentioned.

I think I've made the right call to move out the lower risk product to help grow my pot better with a slightly higher risk product

sho_me_da_money

FYI THese were the other products I could select:

MallyGirl

Don't assume that you have to choose just one fund. As you start out it won't make a lot of difference giving you time to do some reading but you might in the future want to do something like 90% in the one you have chosen but also 10% in the UK one (2nd one down in the 4 Upper category). Or some other split - mine are just an example, not advice.

MX5huggy

sho_me_da_money said:

FYI THese were the other products I could select:

I would choose the one above almost exactly the same, but has UK exposure and has cheaper fee, although both fees are good. 

sho_me_da_money

Hi all,
Sorry for yet another question. I am reading online that one has to claim the additional 20% tax through an annual tax return form as I am a higher rate tax payer. Does this apply to my circumstances given that I am using the salary sacrifice to bring my income below the 50K threshold?
Apologies for such a newb question.

hugheskevi

sho_me_da_money said:

Hi all,
Sorry for yet another question. I am reading online that one has to claim the additional 20% tax through an annual tax return form as I am a higher rate tax payer. Does this apply to my circumstances given that I am using the salary sacrifice to bring my income below the 50K threshold?
Apologies for such a newb question.

No. Due to salary sacrifice, you do not make any pension contributions yourself at all, rather, your salary is reduced and your employer makes employer pension contributions. Hence when your reduced salary is paid via PAYE you automatically receive all the relief due.

It is individuals contributing through relief at source who have to claim additional relief.

ex-pat_scot

sho_me_da_money said:

Hi all,
Sorry for yet another question. I am reading online that one has to claim the additional 20% tax through an annual tax return form as I am a higher rate tax payer. Does this apply to my circumstances given that I am using the salary sacrifice to bring my income below the 50K threshold?
Apologies for such a newb question.

No.
If it is salsac then your tax return will not include this as income.
For example, if you earn £70,000 and salsac £20,000 into your pension, then your gross salary is £50,000 for tax purposes, benefits etc.  As such, there's no tax relief to reclaim.

sho_me_da_money

Thank you all.
I just learned that I had a pension in a very old company worth £6K and its just been sat there doing nothing. Would you
1. Transfer it to the current pension provider
2. Transfer it to something called a SIPP - can I take the 6K and throw it all on a stock?