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SIPP or LISA - 39ya no pension.

barnstormerdog
barnstormerdog Posts: 74 Forumite
Third Anniversary 10 Posts Name Dropper
in Pensions, annuities & retirement planning
Hi,

I must admit I am not money savy and have lived life hand to mouth but feel that I should be thinking about putting what i can afford aside for retirement. I have started looking in to the different options and have read various threads and now I feel even more confused as I thought a S&S LISA was the obvious way to go..

I dont own a house and can only afford around £150 per month to put in to something. Can anyone give me some advice, I have looked at cash LISA and S&S LISA but it looks like any state benefits would be take that in to consideration, so would it be worth it? Should i be looking a SIPP instead or something else?

Thanks in advance

Comments

  • xylophone
    xylophone Posts: 45,930 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Are you employed? If so, does your employer provide a pension scheme?

    Have you checked your state pension statement?

    https://www.gov.uk/check-state-pension

    Income (including pension income)and capital are taken into account when assessing entitlement to means tested benefits.

    See here for current rules on pension credit

    https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs48_pension_credit_fcs.pdf

    For a modest monthly contribution you might consider a stakeholder.

    https://www.cavendishonline.co.uk/pensions/stakeholder-pensions/
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Join the employers pension, then use a LISA to save for a home with whatever you have leftover.

    And a S&S isa is preferable to cash unless you plan to use it withing 5 years or less.
  • Brynsam
    Brynsam Posts: 3,643 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper Combo Breaker
    You can get better returns on non-ISA savings and as you get up to £1,000 of interest tax free each year, that may be a better way to go (assuming you aren't saving to buy a home).

    The 'Banking and Saving' tab at the top middle of this page will give you plenty of info on where to find the best rates.
  • FatherAbraham
    FatherAbraham Posts: 1,036 Forumite
    Part of the Furniture 500 Posts Photogenic Combo Breaker
    barnstormerdog wrote: »
    Hi,

    I must admit I am not money savy and have lived life hand to mouth but feel that I should be thinking about putting what i can afford aside for retirement. I have started looking in to the different options and have read various threads and now I feel even more confused as I thought a S&S LISA was the obvious way to go..

    I dont own a house and can only afford around £150 per month to put in to something. Can anyone give me some advice, I have looked at cash LISA and S&S LISA but it looks like any state benefits would be take that in to consideration, so would it be worth it? Should i be looking a SIPP instead or something else?

    Thanks in advance

    A SIPP is an expensive option for well-informed investors. You might do better with a simple personal pension.

    Warmest regards,
    FA
    Thus the old Gentleman ended his Harangue. The People heard it, and approved the Doctrine, and immediately practised the Contrary, just as if it had been a common Sermon; for the Vendue opened ...
    THE WAY TO WEALTH, Benjamin Franklin, 1758 AD
  • andy001
    andy001 Posts: 119 Forumite
    Fourth Anniversary 100 Posts
    I would open LISa for minimum amount now and go SIPP way as stated above
    Remember once you cross 40, you can!!!8217;t open LISA
    You may decide to put money in future in LISA if you have spare cash etc
    I'm not a Financial advisor.
    Please seek independent financial advice.
  • barnstormerdog
    barnstormerdog Posts: 74 Forumite
    Third Anniversary 10 Posts Name Dropper
    Thanks to you all for your advice.
    I am self employed so do not have an employers pension.

    I'll look in to a simple personal pension and then decide before fri (I'm 40) whether or not to take out a LISA
  • TheShape
    TheShape Posts: 1,923 Forumite
    Tenth Anniversary 1,000 Posts Name Dropper Combo Breaker
    barnstormerdog wrote: »
    Thanks to you all for your advice.
    I am self employed so do not have an employers pension.

    I'll look in to a simple personal pension and then decide before fri (I'm 40) whether or not to take out a LISA

    You can open a cash LISA with Skipton with £1. If you don't open a LISA before Friday you will NEVER be able able to open one. For the sake of £1 get one open now!
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