SIPP or Stocks & Shares ISA

Sew_Late

https://forums.moneysavingexpert.com/discussion/comment/82020019#Comment_82020019

Thank you. So you think it is still worth getting a pension? I've been overpaying my mortgage as much as I can and can't overpay any more this year without penalty. Appreciate your advice. It's been a bit confusing.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82023166#Comment_82023166

Yes it will be worth adding more to a pension, as you have some spare cash and you can not add anymore to your mortgage. Having a bigger pension when you retire can only be a good thing.

However probably easier just to add more to your existing work place pension than start a new one. You could do this by substantially increasing your monthly contributions, or by adding a lump sum ( most are happy for you to do this) .

k12479

Check if your employer offers any matching of employee pension contributions, if so then that's always a good thing to make use of.

Sew_Late

https://forums.moneysavingexpert.com/discussion/comment/82023257#Comment_82023257

Thank you for your time and advice on this.

Worried_fool

https://forums.moneysavingexpert.com/discussion/6670460/sipp-or-stocks-shares-isa

Personally I would do both.

There is a limit to how much you can add to your pension, depending on your income and how much has gone into your workplace pension (as explained on this thread). And the maximum you can put into an ISA is £20,000 each year. So probably you will do both and still have money left over.

MiserlyMartin

I have been told by Pensionwise that you can indeed add 60k to a pension, even if your earnings were not that high. What you won't get is tax relief on anything above your earnings. But as I understand it you will need to pay this 60k in by special arrangement with a decent pension company not the app based FINTECHS which have no facility to go above your earnings and things would get confusing they would send you the extra back. Note, this is nothing to do with carry forward rules

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82038940#Comment_82038940

Agree it's theoretically possible, but how would it benefit OP to do that with money already in their possession, given that it would then be subject to income tax (on 75% of it) when drawn down, despite not attracting the relief on the way in?