£10k surplus cash - SIPP top up?

Pats51

Oh I see ! So earned income just means how much money I earnt for work - and yes it’s over £12500 so I could potentially put all £10k into a new pension either with someone like Vanguard or Standard Life. I did actually speak to a helpful person there but now even more confused. Chased the financial advisor twice and now she’s come back to me. I realise I’m just small fry to her. Sad face. Thanks everyone for your help. 

xylophone

Have you now come to a decision?

penners324

Maxed your ISA but no pension contributions?

Should be aiming to do the reverse.....

penners324

PensionBee is a perfectly valid company to use. It's not just for combining old pensions (in fact VG can do that as well), it's also very easy to pay into.

Pats51

molerat said:

How much earned income this year ? 

How much pension contribution have you already made this year ?

Trying to work out how to reply on here ! Earned income approx 50k. Zero pension contribution for the past 20 years. Sigh. 

Pats51

xylophone said:

Have you now come to a decision?

Not really. I have no idea if the Standard Life pensions I have at the moment are any worse or better than say a new Vanguard or Pension Bee. But I guess putting the money into something is better than not putting it in at all. And then I also get the tax relief. 

xylophone

If you have relevant earnings of £50,000 in this tax year and have made no pension contributions at all, then you could contribute up to £32,000 to a personal pension and receive up to £8,000 in tax relief.

Not really. I have no idea if the Standard Life pensions I have at the moment are any worse or better than say a new Vanguard or Pension Bee. 

Has the IFA you consulted not evaluated your existing pensions and advised on the best way forward?

Albermarle

But I guess putting the money into something is better than not putting it in at all. And then I also get the tax relief. 

The choice of provider is much less important than your contribution level.

macman

Pats51 said:

xylophone said:

Have you now come to a decision?

Not really. I have no idea if the Standard Life pensions I have at the moment are any worse or better than say a new Vanguard or Pension Bee. But I guess putting the money into something is better than not putting it in at all. And then I also get the tax relief. 

Nor do we, because we don't know what the fees are on your SL pension. But Vanguard platform fees are just 0.15%, about the lowest on the market. probably far less than you are paying now, on a pension that you've not contributed to for 20 years. 
Even if you had contributed just the (non-earnings) limit of £2,880pa for that time, then you would have received £14,400 in tax relief. 
If you are earning £50k pa now, then you need to be putting a very large proportion of that into a pension every year from now until your retirement (maybe 10 years) in order to accumulate any reasonable pension pot. Not just the spare £10K as a one off.
Your immediate priority, however, is to get as much as you can afford (within the 21/22 earnings limit) into a pension (any pension) before the cut off on 5/4/22. You can always transfer the pension to another provider during the following tax year.

Kim1965

How much do you have in Isa's? Mid fifties surely pension is a better home for savings. Unless you have loads in an ISA, with earnings of 50 k pa you are heading for a hard landing at 67.
 Do you have full state pension?