Any advice on which investment app to choose?

EverythingCounts

https://forums.moneysavingexpert.com/discussion/comment/81988972#Comment_81988972

Thanks for the response, if you see my comment above you’ll see it’s a defined contribution pension scheme and I am a reasonable way above the 40% tax limit at 80k.

So reading your comment I don’t need to concern myself with claiming tax back as its salary sacrifice.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81989148#Comment_81989148

Yes salary exchange is another term for salary sacrifice.

If you can afford it you should increase your contributions to around 35% so you can fully fill your boots with 40% tax relief. Or at least significantly more than 6%.

It has been predicted for many years that 40% tax relief on pension contributions, would be abolished as it is so generous/expensive for the Treasury, but so far it still survives.

Some posters on here ( including me ) used up savings in their last few years of employment, so they could maximise pension contributions like this.

The next step ( if not already in hand) is to familiarise yourself with how the pension is invested- something neglected by the large majority of people with DC pensions, and not always with good results.

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/81988791#Comment_81988791

Yes, I have my bank app on my phone and also one credit card to use for contactless payments. Both are behind facial recognition.

EverythingCounts

https://forums.moneysavingexpert.com/discussion/comment/81989243#Comment_81989243

Thanks for opening my eyes to this, it’s not something I’ve thought about, I figured putting 6% in and my company 10% was decent enough but yes I can certainly make much more of a contribution and it could make a huge difference.

As for the funds, the pension is currently invested in Blackrock (50:50) Global Equity Index Tracker FP.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81989336#Comment_81989336

Just be aware that salary sacrifice for pension contributions is going to be restricted in future (2029?) so you would be sensible to crack on with increasing your salary sacrifice contributions sooner rather than later.

EverythingCounts

https://forums.moneysavingexpert.com/discussion/comment/81989428#Comment_81989428

Funny you mention that as I was talking to somebody about this and they said the same thing, so yes need to make the most of it whilst I can.

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/81989428#Comment_81989428

I hadn't heard it was being restricted at all, simply the NI relief will only apply to a capped amount. All the benefits previously mentioned here about tax bracket saving etc. still apply.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81989543#Comment_81989543

To be clear, the tax advantages mentioned will not change. Salary sacrifice has an advantage over other methods of contributing to a pension as there is an NI saving. However you get the same tax relief whatever the method.

As for the funds, the pension is currently invested in Blackrock (50:50) Global Equity Index Tracker FP

So a relatively risky option but you should have seen some good growth in recent years, although being 50% in UK equities is quite high and 18% in US is pretty low. This will have restricted the growth, not so much recently, but in previous years. More typically the split would be the other way round.

I guess you know these types of funds will get hit hard in any market crash, although they should recover again at some point. You might want to consider dialling down the risk level at some point ( but not too much) .

By the way if in future you have any specific pension related questions, you would be better starting a thread on the pensions forum.

Pensions, annuities & retirement planning — MoneySavingExpert Forum

cloud_dog

https://forums.moneysavingexpert.com/discussion/comment/81988470#Comment_81988470

I'm not dissing Freetrade as a provider but, given that the OP is looking to retire in 2 to 3 years, and given that FT only offer UPLS drawdown with a £240 charge per drawdown, they probably wouldn't make my list given the circumstances for @EverythingCounts .

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81989701#Comment_81989701

Yes it was the NI I was thinking about. Salary sacrifice has no tax advantages over relief at source contributions. That is six of one half a dozen of another.