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Stocks n Shares ISA

DonaldDownTheWing said:
I’m 29, 30 in June. If I started sticking £50pcm into a SIPP, what would I be looking at come retirement?
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£60k at 60 is a decent guesstimate but play around with ChatGPT or Gemini to get some ideas

The secret is to start at £50 a month but to increase it slightly every year as your pay (hopefully) rises. If it's done as a direct debit then you never notice the money has gone..
 

Matt Hopkins said:
As @Edinburgh Black Cat says. However my workplace pension would only let you chose once a year how much to contribute as a % of your wage then you were tied for the year, so no lump sums allowed, no changing of your mind if your circumstances changed that was it. So a SIPP would be ideal if there are any bonuses, spare cash could be put in 👍
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My workplace pension allows changes at any time. They put in 6% and previously I matched it but over the last 18 month I have been nudging mine up and up and I now have a combined 20% going in. That's I think the max I want to do.

I am still learning about SIPP's but as I have a pretty good workplace pension, and I don't know much about stocks and shares so wouldn't be able to pick my own investments any better, I should probably stick with the pension but I am also trying to get a small saving amount going and will likely put it on the S&P500.

I would love to be able to retire at 57, but not sure how realistic that is tbh. My aim with the savings is that if I can get a years worth of money in there then that could potentially be a year earlier I could retire. again, no idea how realistic any of this is though really,

One worry I have with my pension/savings/retirement is that Mrs Shambo doesn't take the same approach to financial planning and is not well set up at all to retire, and so my finances will likely have to partly support her too, so I may well need more than I think.
 
Matt Hopkins said:
You'd still be better off putting the money into a SIPP than an ISA especially if you are in 40% tax bracket and then be in 20% bracket when taking it. Even if you are 20% now then 20% in pension it's still a 6.25% advantage.

Chances are a SIPP wont be 'better' than a workplace pension due to employer contribution but would be handy to run along side it 👍

As @Edinburgh Black Cat says. However my workplace pension would only let you chose once a year how much to contribute as a % of your wage then you were tied for the year, so no lump sums allowed, no changing of your mind if your circumstances changed that was it. So a SIPP would be ideal if there are any bonuses, spare cash could be put in 👍
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£50 a month is manageable for me, so I’ll open one and just do that.
 
Shambo said:
My workplace pension allows changes at any time. They put in 6% and previously I matched it but over the last 18 month I have been nudging mine up and up and I now have a combined 20% going in. That's I think the max I want to do.

I am still learning about SIPP's but as I have a pretty good workplace pension, and I don't know much about stocks and shares so wouldn't be able to pick my own investments any better, I should probably stick with the pension but I am also trying to get a small saving amount going and will likely put it on the S&P500.

I would love to be able to retire at 57, but not sure how realistic that is tbh. My aim with the savings is that if I can get a years worth of money in there then that could potentially be a year earlier I could retire. again, no idea how realistic any of this is though really,

One worry I have with my pension/savings/retirement is that Mrs Shambo doesn't take the same approach to financial planning and is not well set up at all to retire, and so my finances will likely have to partly support her too, so I may well need more than I think.
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👍 Doing canny there putting in 20% well done.
My opinion, and I'm not a FA in fact I probably know FA :D would be to, without running short of a cash buffer, put spare cash in a SIPP or your wifes if she doesn't have much in way of pension unless of course she leaves you :eek: if you put some pics up of her we can decide on the chances of her running of with someone :D:D👍
Don't take this the wrong way you say you couldn't pick funds any better but then say you'd put it in SP500 so you have sort of made a choice or have an idea where you would maybe invest. You could put money in a SIPP in the SP500?
 
douggie said:
Say the absolute same thing to young people at work who don’t bother with any SIPP “got my work pension” etc etc

Try to explain to someone in their 20’s just stick £50 a month into lifestyle 100 they would be amazed what it could become.
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£50 a month for 30 years, at an interest rate of 8% (which is more than reasonable for LS100), and increasing deposits by 3% a year for inflation equals £100,483.
 
Matt Hopkins said:
Chances are a SIPP wont be 'better' than a workplace pension due to employer contribution but would be handy to run along side it
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More in my case, I could transfer out to a sipp after the employer contribution. People's pension are ambiguous about whether a full transfer of funds makes you leave the scheme though. Fortunately I'm changing employee soon so that resolved it for me.
 
Edinburgh Black Cat said:
£50k to £60k (in today's money) when you hit 60. Could be more, could be less.


If your workplace pension is a Defined Contribution, which it sounds like yours is, then there's little benefit to a SIPP. The main difference is that you get more control over what you can invest in. You could buy individual stocks for example, for most people that isn't actually helpful.
Edit: the important point is that investing that bit extra adds up over time. Whether it is best doing that in a workplace pension, SIPP, or Stocks & Shares ISA is debatable.
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From a tax point of view come retirement having a blend of taxable and non taxable funds to live off is imo the ideal model. I think between my Mrs and I qe can easily get 1k a week and pay zero tax, certainly upto spa. If the money was all in pensions that would not be the case.
 
DBStar said:
More in my case, I could transfer out to a sipp after the employer contribution. People's pension are ambiguous about whether a full transfer of funds makes you leave the scheme though. Fortunately I'm changing employee soon so that resolved it for me.
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Yes my workplace pension wouldn't allow any sort of transfer while I was still an active member.
Just as an aside your other post said you were in Vanguard trackers and were about 1% down, I've just checked mine and it's the highest it's ever been and I'm taking my pension from it as well 👍
 
Matt Hopkins said:
Yes my workplace pension wouldn't allow any sort of transfer while I was still an active member.
Just as an aside your other post said you were in Vanguard trackers and were about 1% down, I've just checked mine and it's the highest it's ever been and I'm taking my pension from it as well 👍
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Yeah I looked today and it is back over now. I only had it a few months ago in a S&S ISA. It went up nicely, dropped to a loss and now back past where it had risen to. It's really only for very long term for me so I'm easy with it anyway.
 
douggie said:
Got my usual month wait for HMRC to issue my repayment for additional SIPP tax relief
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A month is superb for a tax refund compared to a PAYE related one.

If you go. SIPP, do you have to apply for it all back, or just the higher/additional and the pension company claims the basic?
 
42 said:
For SIPP the 20% is automatic, then if higher rate payer, you have to claim that yourself
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I salary sacrifice enough into my workplace pension to drop into the 20% tax bracket, so anything I put into my SIPP gets the auto 20% added and I don't have to fanny about with tax returns,
 
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