Add to SIPP or better with ISA?

27 Posts


Hi all
Shortly retiring and number crunching at the moment
Shortly retiring and number crunching at the moment
Have a DB pension which will start when I finish work, don't know exact figures and it's also complicated by McCloud judgement. However I do know that when I get SP in 6 years will be HR taxpayer.
Have been paying into a SIPP for a number of years (as I was earning less and didn't know my final pension would be as much).
This is last year I can contribute, I've looked at figures and by my reckoning I think there's still a net benefit of paying in , even though I'll be taxed at 40 % when I take the money out. I'll be able to get some money at 20% from SIPP in drawdown over the next 5 years, but obviously not all.
Am I missing something here , is it worth doing this or is there more benefit just putting the money in an ISA?
Any thoughts appreciated !
Have been paying into a SIPP for a number of years (as I was earning less and didn't know my final pension would be as much).
This is last year I can contribute, I've looked at figures and by my reckoning I think there's still a net benefit of paying in , even though I'll be taxed at 40 % when I take the money out. I'll be able to get some money at 20% from SIPP in drawdown over the next 5 years, but obviously not all.
Am I missing something here , is it worth doing this or is there more benefit just putting the money in an ISA?
Any thoughts appreciated !
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simple example
You Salary Sacrifice(forget the NI benefits for this) or net pay £1667 into a SIPP and invest in a fund, you pay £667 less tax .
SIPP taxed at 40% gives you £2000 of £3334
ISA not taxed gives you £2000 of £2000