Pensions



A SIPP is a Self Invested Personal Pension. Basically you put your money in a choose what you want to invest in. Basically you’d have to be pretty confident & have a decent knowledge to want to do it yourself. Otherwise you’d pay a Financial Advosor to do it for you.

Being a Ltd Co you can take earnings in the form as dividends which has a lower tax rate after you’ve used your tax free income allowance. But again, you’d get a qualified accountant to do all this for you, keep you on the right track & use the allowances available to you to the fullest.

You can actually use your company to pay the contribution and reduce your corporation tax liability (its a deductible expense like any business cost). It’s more tax efficient to do it that way rather than paying from taxed income i.e. after dividends

I’m a chartered financial planner btw (but that’s free info) 😎
 
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I’m going to be sorting my pension out after the year (draw down)..I had a brief chat with Shirley Shammel on here and he seems canny..anyone got any recommendations for advisors..I’ve spoken to a couple but haven’t committed.
 
I pay the max of 6% at our place which is then matched.

I've moved it all into medium risk.

At 29, now considering adding some AVCs to it on a monthly basis but the fact those wont be matched is making me wonder if it's worth it - if the investments drop etc.
 
I pay the max of 6% at our place which is then matched.

I've moved it all into medium risk.

At 29, now considering adding some AVCs to it on a monthly basis but the fact those wont be matched is making me wonder if it's worth it - if the investments drop etc.
Do your company operate salary sacrifice? That gives you a little extra advantage when making AVCs as it comes off your gross salary before tax and NI.
 
I pay the max of 6% at our place which is then matched.

I've moved it all into medium risk.

At 29, now considering adding some AVCs to it on a monthly basis but the fact those wont be matched is making me wonder if it's worth it - if the investments drop etc.
Might be worth looking at a lifetime ISA at your age?
 
Do your company operate salary sacrifice? That gives you a little extra advantage when making AVCs as it comes off your gross salary before tax and NI.

It does mate yeah, was one of the reasons when I was looking at an Lifetime ISA and a few threads on MSE and due to the tax savings through salary sacrifice the pension more than likely outperforms any lifetime ISA.

I wasnt thinking much, £50 maybe but starting this early it should add up and compound if it the investment outlook remains decent.
Might be worth looking at a lifetime ISA at your age?

As above mate, had a look at those the other day, but because I get the bonus of reduced tax on AVCs into a pension then the lifetime ISAs already start behind the curve in terms of returns.

I'll look more into it though cheers, I've only really used MSE to get a grasp so far.
 
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Best thing I ever did was to start a private pension.
I started it off in my late 20's - and always topped it up to the max I was allowed to each year.
And when allowed to - paid-in lump sums too.
I took early retirement and I am on "draw-down" now - and reaping what I have sown.:cool:
Are you running the draw-down yourself or do you have a FA looking after it for you?
I will be going the draw-down route eventually which fills me with dread on two fronts (1) The stress of running it myself and (2) The thought of paying someone a large chunk to run it!
 
Are you running the draw-down yourself or do you have a FA looking after it for you?
I will be going the draw-down route eventually which fills me with dread on two fronts (1) The stress of running it myself and (2) The thought of paying someone a large chunk to run it!
Everything is through the Pru marra.
 
I pay in 6% and my employer pays in 12% - there’s not many companies that do that is there? Place is just pissing me off and thinking of looking elsewhere but not sure if I should if that is a better than normal pension.
 

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