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  • FIRST POST
    • robaber
    • By robaber 13th Jun 19, 6:06 PM
    • 4Posts
    • 1Thanks
    robaber
    Second pension or LISA
    • #1
    • 13th Jun 19, 6:06 PM
    Second pension or LISA 13th Jun 19 at 6:06 PM
    Hello

    My wife currently pays into her workplace pension. She would like to save more towards her retirement, but her workplace pension does not permit Additional Voluntary Contributions.

    She has stated paying into a Cash Lisa, but now wonders if she would have been better off setting up a second pension?

    She doesn't plan to withdraw any funds before retirement.

    Thanks

    Rob
Page 1
    • dunstonh
    • By dunstonh 13th Jun 19, 7:38 PM
    • 98,597 Posts
    • 67,050 Thanks
    dunstonh
    • #2
    • 13th Jun 19, 7:38 PM
    • #2
    • 13th Jun 19, 7:38 PM
    but her workplace pension does not permit Additional Voluntary Contributions.
    Additional Voluntary Contributions - being wary of terminology here as that terminology indicates a product type. They may be saying they don't offer an AVC. However, they may allow increased contributions into the main scheme.

    She has stated paying into a Cash Lisa,
    That is a bit naff unless a house purchase is due in the next year or two.

    but now wonders if she would have been better off setting up a second pension?
    If it is for retirement planning then a Cash LISA is completely naff. An S&S LISA may be better than a personal pension (or worse) but a Cash LISA is not aimed at retirement planning.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • robaber
    • By robaber 13th Jun 19, 8:20 PM
    • 4 Posts
    • 1 Thanks
    robaber
    • #3
    • 13th Jun 19, 8:20 PM
    • #3
    • 13th Jun 19, 8:20 PM
    Okay, thanks.

    Yes, it is for retirement planning.

    Why is a personal pension better than a Cash LISA or a S&S LISA?
    • xylophone
    • By xylophone 13th Jun 19, 8:28 PM
    • 31,328 Posts
    • 19,419 Thanks
    xylophone
    • #4
    • 13th Jun 19, 8:28 PM
    • #4
    • 13th Jun 19, 8:28 PM
    Of which workplace pension scheme is your wife a member?

    How old is your wife?

    Is she a basic or higher rate tax payer?
    • robaber
    • By robaber 13th Jun 19, 8:51 PM
    • 4 Posts
    • 1 Thanks
    robaber
    • #5
    • 13th Jun 19, 8:51 PM
    • #5
    • 13th Jun 19, 8:51 PM
    It is called the people's pension, from BC&E.

    She is 34 and a basic rate tax payer.
    • dunstonh
    • By dunstonh 13th Jun 19, 8:52 PM
    • 98,597 Posts
    • 67,050 Thanks
    dunstonh
    • #6
    • 13th Jun 19, 8:52 PM
    • #6
    • 13th Jun 19, 8:52 PM
    Why is a personal pension better than a Cash LISA or a S&S LISA?
    Cash is unsuitable for long term planning.

    A personal pension and S&S LISA are similar but certain differences which may see one or the other being most suitable. Both are better than Cash LISA.

    Without knowing more details, we cant say which is best. There are various pension vs LISA guides on this site though.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • ewaste
    • By ewaste 13th Jun 19, 9:42 PM
    • 72 Posts
    • 46 Thanks
    ewaste
    • #7
    • 13th Jun 19, 9:42 PM
    • #7
    • 13th Jun 19, 9:42 PM
    Certainly possible to set up a direct debit to add to the existing pot via the Peoples Pension website and select which funds you want to pay more into, reasonably simple website to use. One of my previous employers used it, usual basic fund choices and I believe the all in charge is 0.5% for the funds.

    To contribute more:- https://thepeoplespension.co.uk/help/knowledgebase/make-personal-payments/

    Copy paste of the fund options below, usual generic options. I've got a dollop in 100% in "0.5% B&CE GI (up to 100% shares)" due to my age and risk tolerance etc.

    B&CE GI (up to 100% shares)
    B&CE GI (up to 85% shares)
    B&CE GI (up to 60% shares)
    B&CE Pre Retirement
    B&CE Cash
    B&CE Annuity
    B&CE Ethical
    B&CE Shariah

    More info on each fund option:- https://thepeoplespension.co.uk/investment-funds/
    Last edited by ewaste; 13-06-2019 at 9:45 PM.
    • robaber
    • By robaber 14th Jun 19, 12:23 PM
    • 4 Posts
    • 1 Thanks
    robaber
    • #8
    • 14th Jun 19, 12:23 PM
    • #8
    • 14th Jun 19, 12:23 PM
    Thanks, that is very helpful.

    It sounds like paying more into her workplace pension may be a better option for her.
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