Advice for ISA for wife

Bandy2023

Hi, my wife is thoroughly pee'd off with Aviva since switching her pension to them, they seem spectacularly unable to take her direct debits every month.

So she's decided just to leave that pension as it is with no further contributions and set something else up instead.

She's 56 and this will go towards retirement, but she can't afford much ( maybe £70 a month ) and she's self-employed so doesn't have an employer adding to it.

Any advise for a good long(ish) term ISA / savings account?

I've heard of these LISA things, but I understand ( maybe wrongly ) that they're only able to be accessed when retirement comes.

We'd prefer something that could be accessed before her retirement age, which looks like will become 68 according to the news…..

Isthisforreal99

Why not a SIPP with another pension provider for the free tax relief, i.e. she pays in £80 which becomes £100 with tax relief. A SIPP can be accessed at 55 or 57 from 6 April 2028.

She is too old for a LISA.

Bandy2023

https://forums.moneysavingexpert.com/discussion/comment/82072743#Comment_82072743

Sounds interesting

I assume contributions to a SIPP can be declared on her tax return?

Albermarle

Although the state pension is not available until she is 67 ( maybe 68 at some later date). Other pensions are normally available to take at 55 ( rising to 57 in a couple of years) . Certain occupational pensions may have different age restrictions but that does not apply here.

Pensions beats ISA due to the tax relief.

However normally money in a pension is invested but that normally works best over a long time frame.

Isthisforreal99

https://forums.moneysavingexpert.com/discussion/comment/82072758#Comment_82072758

It will only affect her tax position if she is a higher rate taxpayer and it doesn't like she is.

Pension contributions are not a business expense when a sole trader.

Bandy2023

https://forums.moneysavingexpert.com/discussion/comment/82072841#Comment_82072841

When we do her tax return, she is asked if she makes pension contributions.

dunstonh

https://forums.moneysavingexpert.com/discussion/comment/82072852#Comment_82072852

Correct, but it won't make any difference unless she goes into higher rate tax

DRS1

https://forums.moneysavingexpert.com/discussion/comment/82072758#Comment_82072758

If she does a tax return then the SIPP contributions should be reported just like the contributions to the Aviva pension. Just because she won't get any higher rate tax relief doesn't mean she should leave the contributions off her tax return.

Does she have to use direct debits to fund the Aviva pension? Could she set up a standing order instead? Or just do a manual transfer as and when? When I had an Aviva pension (and I ended up with 4 of them) I used to send them a cheque every year or two - but that was a long time ago.

Bandy2023

https://forums.moneysavingexpert.com/discussion/comment/82072870#Comment_82072870

It's the general incompetence she's not willing to pander to any more.

She's determined to switch to someone else.