Add to sipp or Isa

squash18

Bit of background 
55 and still working and I have my main pension in a sipp that I have not started drawing from yet 
The sipp value is £500000 and with interactive investor 
I have £20000 to add to either my sipp or my sticks and shares Isa which has a value of £1000 
I like the thought of adding money to the sipp and getting tax relief 
Or should I be putting it in the Isa and investing it? 

Any thoughts 
Thanks 

sheslookinhot

Putting into the SIPP is also investing it. With the bonus of the HRMC contribution I would have it in the SIPP.

Nebulous2

Any plans to retire? How much money do you need to live on when you do retire? How is the SIPP invested? Do you have a partner? What is their pension like? 

You sound quite well covered for a modest retirement, particularly if you are still working, but you may not want to drawdown your pension as it could limit your future contributions. 

squash18

Nebulous2 said:

Any plans to retire? How much money do you need to live on when you do retire? How is the SIPP invested? Do you have a partner? What is their pension like? 

You sound quite well covered for a modest retirement, particularly if you are still working, but you may not want to drawdown your pension as it could limit your future contributions. 

Another year or 2 and then I’ll retire 
Sipp is mainly invested in low cost multiple asset funds and a few satellites that I manage myself 
I don’t intend to drawdown until I stop working 

Dazed_and_C0nfused

If you are earning enough to be eligible to contribute £25k (gross) and expect to be a basic rate payer in retirement then the SIPP is an easy way to get an immediate gain of 6.25% over the ISA option.

squash18

Dazed_and_C0nfused said:

If you are earning enough to be eligible to contribute £25k (gross) and expect to be a basic rate payer in retirement then the SIPP is an easy way to get an immediate gain of 6.25% over the ISA option.

Yes I am earning that and will be a basic taxpayer in retirement so that confirms what I was thinking 
Thanks 

jamesd

SIPP. Try to contribute all of your gross earnings, including using savings to help make it affordable if necessary. This makes at least 25% of the earnings free of income tax.

Albermarle

If you are a 40% taxpayer then even better to contribute to the SIPP, although to get the full benefit you would have to be earning > £75K pa

jicms

I'm planning to add this year's 20k to my S&S ISA.  I'm late sixties working minimal part-time hours.  I have a tiny workplace pension and some investment income so a standard rate taxpayer.  Should I consider starting a SIPP or is it too late to bother?

MX5huggy

jicms said:

I'm planning to add this year's 20k to my S&S ISA.  I'm late sixties working minimal part-time hours.  I have a tiny workplace pension and some investment income so a standard rate taxpayer.  Should I consider starting a SIPP or is it too late to bother?

You should open a SIPP, but start your own thread about it to go through all the permutations. 

jamesd

It's too late to bother when you reach age 75 and are no longer allowed to do it. Not before then except in specific individual circumstances that can't possibly apply to you.