Part of an inheritance

Porky_pie1

Hi all, i am due to receive a inheritance of around £50k soon. Now i plan to invest some in my stocks and share isa. Save some for spends, and i also want to stick about £10k in to my pension. I have a work place pension witch my employer matches my contributions. My question is should i just put the £10k in to my work place pension this would not be matched by employer or should open a sipp and put the money in there???

Dazed_and_C0nfused

Doe your workplace pension offer the funds you would prefer to be invested in?

How do the fees your workplace pension charges compare to your preferred SIPP?

Porky_pie1

Im more than happy with the funds, my work place pDazed_and_C0nfused said:

Doe your workplace pension offer the funds you would prefer to be invested in?

How do the fees your workplace pension charges compare to your preferred SIPP?

I am more than with the fund i am invested in with the work place pension, I am yet to fully look in to the sipp option as i was siding with just chucking it in to the work place pension. I just was not sure if it was the right thing to do!

Albermarle

i was siding with just chucking it in to the work place pension.

This is probably the simplest option, however you need to check with the provider that they can accept a lump sum direct from you, and they will add basic rate tax relief to it. Most will but worth checking first.

Peterrr

Can you increase your contributions at work and your employer match the increase too? If so perhaps increase such that you contribute an extra £10k over the next year or so, while at the same time using the £10k inheritance to supplement your living expenses.

MX5huggy

Who’s your work place pension with? NEST charge a 1.8% contribution fee for example, almost no one else charges a contribution fee. 

af1963

Peterrr said:

Can you increase your contributions at work and your employer match the increase too? If so perhaps increase such that you contribute an extra £10k over the next year or so, while at the same time using the £10k inheritance to supplement your living expenses.

Particularly if your workplace pension is done using salary sacrifice.  If it is, you can live off the £10k and sacrifice as much as you can from your salary, then you save the NI as well as the tax on whatever you contribute, plus possibly get a bigger 'employer match'.

Also, how old are you ? Paying all the invested money into one of the pensions instead of the ISA could bring a bigger return - boosting it by the tax relief or tax/NI savings -  but ties up the money till the age you can draw the pension (55, 57 or 58 depending on your current age ...)  Whatever you invest in in the ISA, you could also do in a SIPP.