Workplace pension conundrum

[worsy]

First PAYE job in gawd knows how long. They are offering me free money as a contribution to their workplace pension. HL Schroder Managed Balanced Fund is the destination and it also means I need to contribute 5%.

I currently have a pension plan with Royal London in the Governed 7 plus a small Fidelity SIPP which I manage myself.

Obviously I'd be mad not to take the HL one at least for basic contributions, however I want to increase my contribution to 9% as this at least matches the payments I have been making to Royal London.

Question is, do I put the whole monthly in to HL?
Or Transfer the Royal London to HL and carry on
Or 5+3 into HL then 4% into Royal London myself with all the associated Self Assessment pain

Any thoughts as to the funds in question?

[jet_noise]

Is the scheme "salary sacrifice" i.e avoids National Insurance payments on both your and your employer's contributions? It's most tax efficient if it is.
Does the scheme restrict provider or fund choice? Your employer may have a contract with one.

[worsy]

Yes it's salary sacrifice but I understand the fund is fixed.

[Beetnik]

If the Salary Sacrifice scheme allows 9 +3 then that's the way I'd go.

[jet_noise]

No observation on the funds but on the idea of investing new money outside your company scheme:
You lose the NI relief on any money you invest.
You'll have to claim the income tax back yourself.

You have to decide whether the funds you choose outperform the company's enough.
I'd be inclined to keep your existing pots as they are and put all new money into the company scheme.
Always good to spread your risk a bit IMHO.

IANAIFA (I am not an IFA!) just an opinionated recent retiree on the internet who has made those sort of calls.
We're all different, situations and risk attitude vary.

[rustyuk]

Would you be able to transfer out the money into your SIPP?

[JulianPH]

If you can do the whole lot (new contributions) via salary sacrifice then this makes a great deal of sense due to the MI savings.

As your workplace scheme is with HL you will have a whole world of investment option and the managed one is just likely to be a default position.

You can move your Royal London one into HL or Fidelity if you wish.

A lot depends upon how hands on you want to be with managing this.

[worsy]

Thanks all. I agree lots of hassle with a separate payment, it's all done from my company at present so at source.

I don't really want to be hands on so I'll leave the RL where it is and maybe choose a little more adventurous fund on the HL one if that is possible.