SIPP or LISA - 39ya no pension.

barnstormerdog · 12 May 2018 at 3:38PM

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

xylophone · 12 May 2018 at 5:32PM

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 · 12 May 2018 at 5:56PM

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 · 12 May 2018 at 6:51PM

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 · 13 May 2018 at 12:08PM

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

andy001 · 13 May 2018 at 9:37PM

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

barnstormerdog · 23 July 2018 at 4:25PM

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 · 23 July 2018 at 9:34PM

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!

SIPP or LISA - 39ya no pension.

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