Move LISA to SIPP?

mobro123

dunstonh said:

mobro123 said:

dunstonh said:

It seems more logical to keep the LISA for use in later retirement (post payment of LGPS and state pension) and use the SIPP for the pre-payment period when you have the personal allowance available.

i.e. LISA tax free on the drawdown whereas the SIPP wouldn't be above your personal allowance.

Why is it more logical to keep the LISA and use post LGPS? Why not use it from say early 60s to support me through to LGPS and state pension age? 

Why would you use tax free sources when you would be a non-taxpayer?   You waste the tax free money by doing that.    You would want to use taxable sources.
e.g. your SIPP will allow £16.7k per annum drawn free of tax to utilise the current personal allowance until your state pension and LGPS is paid  (75% to the unused personal allowance with 25% on top).     You would save tax free sources, like the LISA, for when you become a taxpayer.

Thanks that makes sense. So it'd be prudent to start a SIPP/ pay into a SIPP with the intention that this supports me from 60 to LGPS/ state pension and then take the LISA tax free as additional income post LGPS? 

mobro123

Alexland said:

I'd be looking to spread the mortgage over a longer term and focus on contributing into both the pensions and LISA. Maybe enough into LGPS now to keep below 40% and then from age 50 when you can no longer contribute to LISA start contributing into a SIPP (if access age not increased to 60 by then) or S&S ISA for pre-60.

I’ve been looking at the numbers and if I stretch the mortgage and pay more into LGPS AVC I can retire comfortably at 60 and take the LGPS with the 8yr early reductions and the AVC tax free. The AVC will be above £300k so would need to buy more LGPS or be be taxed. The LGPS AVC offers salary sacrifice so I benefit for tax and N.I savings. Given this, is there any benefit in starting a SIPP or should I put as much as I can into the AVC? SIPP is be able to take 2 years earlier at 58 but I could always retire and take LGPS and AVC at 58 as well. Am I right in thinking maximising AVC contributions over a SIPP would be more efficient?
TIA

Alexland

To find the experts on LGPS incase there are any gotchas you might be better asking on the pensions forum.

https://forums.moneysavingexpert.com/categories/pensions-annuities-retirement-planning