Have I done the right thing putting a lump sum into our pensions

LisaJW

End of tax year and I've just put a lump sum each into mine and husband's nest pension to reduce corporation tax. Now I'm concerned that I've not done the right thing with markets plummeting.
Can anyone reassure me?

gee9fam

In my view you’ve done the right thing in making the lump sum payment to reduce/avoid corporation tax. However, I would advise doing some research on other SIPP providers and their costs and investment products compared to the costs/products associated with using Nest.

LisaJW

Thank you- will add it to my "to do" list

Grumpy_chap

LisaJW said:

End of tax year and I've just put a lump sum each into mine and husband's nest pension to reduce corporation tax. Now I'm concerned that I've not done the right thing with markets plummeting.
Can anyone reassure me?

If you bought now, then you have bought cheap. 

NannaH

If you were concerned, you could have just left it in cash,
you would still have got the tax relief.  

LisaJW

NannaH said:

If you were concerned, you could have just left it in cash,
you would still have got the tax relief.  

Left it in cash where? 

Dazed_and_C0nfused

LisaJW said:

NannaH said:

If you were concerned, you could have just left it in cash,
you would still have got the tax relief.  

Left it in cash where? 

Within the pension wrapper.

LisaJW

Dazed_and_C0nfused said:

LisaJW said:

NannaH said:

If you were concerned, you could have just left it in cash,
you would still have got the tax relief.  

Left it in cash where? 

Within the pension wrapper.

I only have a nest pension and no time to research new products or open new accounts.

gee9fam

LisaJW said:

I only have a nest pension and no time to research new products or open new accounts.

You’re running a business so will be taking close scrutiny of the costs associated with it to maximise profitability. Why not do the same thing with your pension? You build your pension over many years and the one element that is predictable are the costs associated with managing it. I believe Nest charge 1.8% on new contributions and 0.3% yearly management charge but please check. On other platforms you could remove the 1.8% contribution charge and depending on the fund value could improve on the yearly management cost whilst giving a much wider range of investment choices.

Doesn’t have to be done immediately but as the fund grows the charges are going to make more of an impact particularly if you’re maxing out the employer contribution allowance of £40k. As the employer rather than the employee you have other options on how you structure your remuneration. Have a look here on some basic cost info for a few popular platforms https://www.moneysavingexpert.com/savings/cheap-sipps/

LisaJW

gee9fam said:

LisaJW said:

I only have a nest pension and no time to research new products or open new accounts.

You’re running a business so will be taking close scrutiny of the costs associated with it to maximise profitability. Why not do the same thing with your pension? You build your pension over many years and the one element that is predictable are the costs associated with managing it. I believe Nest charge 1.8% on new contributions and 0.3% yearly management charge but please check. On other platforms you could remove the 1.8% contribution charge and depending on the fund value could improve on the yearly management cost whilst giving a much wider range of investment choices.

Doesn’t have to be done immediately but as the fund grows the charges are going to make more of an impact particularly if you’re maxing out the employer contribution allowance of £40k. As the employer rather than the employee you have other options on how you structure your remuneration. Have a look here on some basic cost info for a few popular platforms https://www.moneysavingexpert.com/savings/cheap-sipps/

Excellent advice, thank you