SIPP & Pension guidance - IM Private Clients
Discussion
OnTheBreadline said:
Not taking the piss. And I don't remember ever claiming 25%! Oh well, a fool and his money...
I'm not sure quote what Pingu is referring to..... there's nothing on a transfer in.If it were new money, then IM (or any other provider) would be able to claim back the basic rate tax and add that as 'free HRMC money' to your fund. However, with a transfer, you've already had that.
Just bringing it back to my original question, as I do not intend to hold as cash - I think a throwaway comment has been jumped on...
There is some new money going in, which I guess is the more urgent part, then there is also the question of do I transfer my old pension in too?
There is some new money going in, which I guess is the more urgent part, then there is also the question of do I transfer my old pension in too?
Craikeybaby said:
Where is a good place to read up on SIPPs/pensions in general?
As I need to work out what to do with mine. I have a pot with Scottish Widows, from my previous employer, which I was paying 14% of my salary in to via salary sacrifice. I have since changed jobs and have a new pension with Nest, which is getting 8%, there doesn't appear to be the option to vary my contribution. However, I would like to put the additional 6% into a pension - during my probation period I have just been putting it in a savings account, but I realise I need to get it into a pension.
It seems like my options are:
Are the 1/3/5/10 cumulative figures for past performance the best way to compare relative performance between funds? I am looking at some, where the longer values are better, but they have been outperformed in the past year. I guess that is an indication of how they weather the bad times, but with a 25 year plus outlook, is that just noise?As I need to work out what to do with mine. I have a pot with Scottish Widows, from my previous employer, which I was paying 14% of my salary in to via salary sacrifice. I have since changed jobs and have a new pension with Nest, which is getting 8%, there doesn't appear to be the option to vary my contribution. However, I would like to put the additional 6% into a pension - during my probation period I have just been putting it in a savings account, but I realise I need to get it into a pension.
It seems like my options are:
- Pay it into my existing Scottish Widows pot - however, I don't know if this is any good, as it was just the old company pension.
- Start a SIPP - how do I choose one that isn't going to cost loads in fees etc? So far my only idea is the Vanguard products, as I have my S&S ISA in their Lifestrategy funds and that seems to be doing OK.
Craikeybaby said:
There is some new money going in, which I guess is the more urgent part, then there is also the question of do I transfer my old pension in too?
Where is a good place to read up on SIPPs/pensions in general?
The 2 Youtube channels that I find really helpful and easy to digest are Pete Matthews 'Meaningful Money' and 'James Shack'....have a look through their videos, plenty of good info in either/both.Where is a good place to read up on SIPPs/pensions in general?
Im not familiar with DB or final salary schemes but if you are referring to DC schemes, I've gone through a similar process in locating all my various pensions and either combining some (e.g: one platform felt archaic and funds choices were poor so transferred the proceeds to my work pension with Standard Life), I also have a SIPP with fidelity into which I transferred a smaller pot from a previous employer. I like the idea of having my SIPP where I can top up near the end of the tax year if needed but also gives me more control on fund choice e.g Fidelity has capped fees for ETF'S so I tend to mainly invest in ETFs in the SIPP and OEIC funds in my primary work pension. My work pension with SL has a good range of funds but not as broad as Fidelity so it's nice to have that option.
If you cant be bothered faffing about with multiple platforms just bring it all into a single provider but before you do, usual caveats..due diligence on the provider, fee structure, is their platform decent, range of funds etc
It's not always the case that a work pension is inferior to a SIPP, my SL pension is very cheap on fees due to an employer discount so am keeping the majority of my pension there for now.
Pensioney question, so I thought I'd put it in here...
I have a DB fund from work, which has now stopped and all new contributions are DC. The DB fund isn't huge, and will buy approx. £2k/year in 30 years time! When I was reading the small print the other day it says that the benefit will increase by CPI or 2% a year whichever is lowest. By this metric I am losing about 9% per year at the moment, and in 30 years time 2 years worth of pension payments might buy nothing more than a coffee from Starbucks once a month.
Is it worth transferring this out of the DB fund, and into a SIPP. If so how would that happen, and what do I need to know (or assume) to work out which is best between moving it, or leaving it in the DB pot?
I have a DB fund from work, which has now stopped and all new contributions are DC. The DB fund isn't huge, and will buy approx. £2k/year in 30 years time! When I was reading the small print the other day it says that the benefit will increase by CPI or 2% a year whichever is lowest. By this metric I am losing about 9% per year at the moment, and in 30 years time 2 years worth of pension payments might buy nothing more than a coffee from Starbucks once a month.
Is it worth transferring this out of the DB fund, and into a SIPP. If so how would that happen, and what do I need to know (or assume) to work out which is best between moving it, or leaving it in the DB pot?
Condi said:
Pensioney question, so I thought I'd put it in here...
I have a DB fund from work, which has now stopped and all new contributions are DC. The DB fund isn't huge, and will buy approx. £2k/year in 30 years time! When I was reading the small print the other day it says that the benefit will increase by CPI or 2% a year whichever is lowest. By this metric I am losing about 9% per year at the moment, and in 30 years time 2 years worth of pension payments might buy nothing more than a coffee from Starbucks once a month.
Is it worth transferring this out of the DB fund, and into a SIPP. If so how would that happen, and what do I need to know (or assume) to work out which is best between moving it, or leaving it in the DB pot?
I did this, and I've lost a lot more than 9% this year alone. Probably near on double that! I have a DB fund from work, which has now stopped and all new contributions are DC. The DB fund isn't huge, and will buy approx. £2k/year in 30 years time! When I was reading the small print the other day it says that the benefit will increase by CPI or 2% a year whichever is lowest. By this metric I am losing about 9% per year at the moment, and in 30 years time 2 years worth of pension payments might buy nothing more than a coffee from Starbucks once a month.
Is it worth transferring this out of the DB fund, and into a SIPP. If so how would that happen, and what do I need to know (or assume) to work out which is best between moving it, or leaving it in the DB pot?
Condi said:
..... it says that the benefit will increase by CPI or 2% a year whichever is lowest. By this metric I am losing about 9% per year at the moment,
at happen, and what do I need to know (or assume) to work out which is best between moving it, or leaving it in the DB pot?
+ 30 years is quite a crystal ball.......at happen, and what do I need to know (or assume) to work out which is best between moving it, or leaving it in the DB pot?
I quote like the mix of DB & DC - it's tempting to think you can do better than CPI - but I like the fact that for a portion of my total pot, I need to give it zero thought - and if I pass first, then Mrs CS needs to give it zero thought.
I wouldn't want it all DB as I'm front loading withdrawals, but some level is quite reassuring - that + state pension is not a bad 'forever' income.
Carbon Sasquatch said:
+ 30 years is quite a crystal ball.......
I quote like the mix of DB & DC - it's tempting to think you can do better than CPI - but I like the fact that for a portion of my total pot, I need to give it zero thought - and if I pass first, then Mrs CS needs to give it zero thought.
I wouldn't want it all DB as I'm front loading withdrawals, but some level is quite reassuring - that + state pension is not a bad 'forever' income.
Well that's exactly my thinking to start with, and why I have it set up in the way it's set up. But as you say, 30 years is a long time, and if it's always going to be behind inflation whenever inflation is +2% then the "30 years is a long time" works against it. Lose 2% per year say (inflation averaging 4% over 30 years) and it's lost over half it's real value between now and delivery. Even if it was in bonds or something you would expect it to maybe lose a little at times and keep up at others, so overall maybe would retain value? I quote like the mix of DB & DC - it's tempting to think you can do better than CPI - but I like the fact that for a portion of my total pot, I need to give it zero thought - and if I pass first, then Mrs CS needs to give it zero thought.
I wouldn't want it all DB as I'm front loading withdrawals, but some level is quite reassuring - that + state pension is not a bad 'forever' income.
Condi said:
I have a DB fund from work, which has now stopped and all new contributions are DC. The DB fund isn't huge, and will buy approx. £2k/year in 30 years time! When I was reading the small print the other day it says that the benefit will increase by CPI or 2% a year whichever is lowest. By this metric I am losing about 9% per year at the moment, and in 30 years time 2 years worth of pension payments might buy nothing more than a coffee from Starbucks once a month.
Is it worth transferring this out of the DB fund, and into a SIPP. If so how would that happen, and what do I need to know (or assume) to work out which is best between moving it, or leaving it in the DB pot?
It depends on the scheme but such caps (isn't it 2.5% not 2?) are generally compounded over the whole period of deferment. You will therefore only lose value in real terms if CPI is greater than 2% per year compounded from the point you left the scheme and when you take you pension.Is it worth transferring this out of the DB fund, and into a SIPP. If so how would that happen, and what do I need to know (or assume) to work out which is best between moving it, or leaving it in the DB pot?
2% compounded over 30 years is 77%. 2.5% is 104%.
It's not beyond the realms of possibility that the UK enters a period of deflation like Japan did on a few occasions recently. I doubt your pension will decrease if this happens.
The point is no-one of knows what will happen. If you have 30 years to go until retirement then you have a long period to save and get exposure to the stock market that way.
VR99 said:
The 2 Youtube channels that I find really helpful and easy to digest are Pete Matthews 'Meaningful Money' and 'James Shack'....have a look through their videos, plenty of good info in either/both.
Im not familiar with DB or final salary schemes but if you are referring to DC schemes, I've gone through a similar process in locating all my various pensions and either combining some (e.g: one platform felt archaic and funds choices were poor so transferred the proceeds to my work pension with Standard Life), I also have a SIPP with fidelity into which I transferred a smaller pot from a previous employer. I like the idea of having my SIPP where I can top up near the end of the tax year if needed but also gives me more control on fund choice e.g Fidelity has capped fees for ETF'S so I tend to mainly invest in ETFs in the SIPP and OEIC funds in my primary work pension. My work pension with SL has a good range of funds but not as broad as Fidelity so it's nice to have that option.
If you cant be bothered faffing about with multiple platforms just bring it all into a single provider but before you do, usual caveats..due diligence on the provider, fee structure, is their platform decent, range of funds etc
It's not always the case that a work pension is inferior to a SIPP, my SL pension is very cheap on fees due to an employer discount so am keeping the majority of my pension there for now.
Thanks, I found the meaningful money videos really helpful in working out where to have my SIPP for the extra money I want to put into my pension each month.Im not familiar with DB or final salary schemes but if you are referring to DC schemes, I've gone through a similar process in locating all my various pensions and either combining some (e.g: one platform felt archaic and funds choices were poor so transferred the proceeds to my work pension with Standard Life), I also have a SIPP with fidelity into which I transferred a smaller pot from a previous employer. I like the idea of having my SIPP where I can top up near the end of the tax year if needed but also gives me more control on fund choice e.g Fidelity has capped fees for ETF'S so I tend to mainly invest in ETFs in the SIPP and OEIC funds in my primary work pension. My work pension with SL has a good range of funds but not as broad as Fidelity so it's nice to have that option.
If you cant be bothered faffing about with multiple platforms just bring it all into a single provider but before you do, usual caveats..due diligence on the provider, fee structure, is their platform decent, range of funds etc
It's not always the case that a work pension is inferior to a SIPP, my SL pension is very cheap on fees due to an employer discount so am keeping the majority of my pension there for now.
Apologies if this question has been asked before:
Can my son, who is 31, a UK citizen who has lived in NZ for 22 years, invest in a UK pension?
ie could he pay the 2800 (?) pounds a year and receive the 20% tax relief?
If the answer is "yes", could a similar UK pension be started for my daughter's 2 year old son (my grandson).
Daughter is UK citizen, grandson's father is Australian - and he was born in Australia.
caziques said:
Apologies if this question has been asked before:
Can my son, who is 31, a UK citizen who has lived in NZ for 22 years, invest in a UK pension?
ie could he pay the 2800 (?) pounds a year and receive the 20% tax relief?
If the answer is "yes", could a similar UK pension be started for my daughter's 2 year old son (my grandson).
Daughter is UK citizen, grandson's father is Australian - and he was born in Australia.
Read thisCan my son, who is 31, a UK citizen who has lived in NZ for 22 years, invest in a UK pension?
ie could he pay the 2800 (?) pounds a year and receive the 20% tax relief?
If the answer is "yes", could a similar UK pension be started for my daughter's 2 year old son (my grandson).
Daughter is UK citizen, grandson's father is Australian - and he was born in Australia.
https://adviser.royallondon.com/technical-central/...
dingg said:
Many thanks for the quick reply. The answer is therefore "no", as far as tax relief goes.B9 said:
Pension carry forward
If I contributed 20k in 19/20, 20/21 and 21/22, and contribute 40k to the 22/23 FY (and expect to do this moving forward) - Would any additional contributions made in 22/23 go towards the unused 19/20 allowance or the 21/22 unused allowances first?
You use up the oldest years first:If I contributed 20k in 19/20, 20/21 and 21/22, and contribute 40k to the 22/23 FY (and expect to do this moving forward) - Would any additional contributions made in 22/23 go towards the unused 19/20 allowance or the 21/22 unused allowances first?
https://www.pensionbee.com/pensions-explained/pens...
note the part about Net Relevant Earnings.
Mr Pointy said:
You use up the oldest years first:
https://www.pensionbee.com/pensions-explained/pens...
note the part about Net Relevant Earnings.
Thanks for the quick reply - for the uneducated (me), say I earned 55k over those years but I contributed (via salary sacrifice) £20k pa - And now I’ve started a new job on £100k, can I sacrifice £60k this year and put the extra £20k against the 19/20 carry forward?https://www.pensionbee.com/pensions-explained/pens...
note the part about Net Relevant Earnings.
And then again for next two years, and then back to standard £40k per year?
All these numbers include employer contributions, which all contributions will be as I’ll be contributing via sacrificing salary
B9 said:
Thanks for the quick reply - for the uneducated (me), say I earned 55k over those years but I contributed (via salary sacrifice) £20k pa - And now I’ve started a new job on £100k, can I sacrifice £60k this year and put the extra £20k against the 19/20 carry forward?
And then again for next two years, and then back to standard £40k per year?
All these numbers include employer contributions, which all contributions will be as I’ll be contributing via sacrificing salary
Hi B9And then again for next two years, and then back to standard £40k per year?
All these numbers include employer contributions, which all contributions will be as I’ll be contributing via sacrificing salary
Yes you can do exactly that.
Cheers
Nik
Hi
Not sure this is the right place to ask, but how ‘active’ are people with their pensions - I.e. in what they are invested? Should I be looking to review monthly/yearly etc?
I don’t think you can give specific advice on what to invest in here but is an IFA in general the type of person to speak to or are there pension specialists?
I don’t have a huge pot currently but got a fair few years to go hopefully and want to make sure I balance risk with compound growth - Plus monthly available going into it is increasing reasonably now earnings are increasing
I am currently 75% in the default Scottish widows balanced portfolio and 25% in Morgan Stanley global brands but no real idea as to what to do next or even how risky (or not) this balance currently is! Any pointers at all?
Not sure this is the right place to ask, but how ‘active’ are people with their pensions - I.e. in what they are invested? Should I be looking to review monthly/yearly etc?
I don’t think you can give specific advice on what to invest in here but is an IFA in general the type of person to speak to or are there pension specialists?
I don’t have a huge pot currently but got a fair few years to go hopefully and want to make sure I balance risk with compound growth - Plus monthly available going into it is increasing reasonably now earnings are increasing
I am currently 75% in the default Scottish widows balanced portfolio and 25% in Morgan Stanley global brands but no real idea as to what to do next or even how risky (or not) this balance currently is! Any pointers at all?
andy ted said:
Hi
Any pointers at all?
One (big) thing to bear in mind is fees - amazing the amount of people that don't consider costs - it makes all the difference. Might be worth a read of this https://www.thisismoney.co.uk/money/investing/arti...Any pointers at all?
andy ted said:
Hi
Not sure this is the right place to ask, but how ‘active’ are people with their pensions - I.e. in what they are invested? Should I be looking to review monthly/yearly etc?
I don’t think you can give specific advice on what to invest in here but is an IFA in general the type of person to speak to or are there pension specialists?
I don’t have a huge pot currently but got a fair few years to go hopefully and want to make sure I balance risk with compound growth - Plus monthly available going into it is increasing reasonably now earnings are increasing
I am currently 75% in the default Scottish widows balanced portfolio and 25% in Morgan Stanley global brands but no real idea as to what to do next or even how risky (or not) this balance currently is! Any pointers at all?
If you get 100 people replying to this you'll get 100 different answers! My 2p worth - pick a good cheap mixed fund (eg Vanguard Lifestrategy 60) and leave it alone! If the market crashes 'Hurry up and do Nothing' is the best approach Not sure this is the right place to ask, but how ‘active’ are people with their pensions - I.e. in what they are invested? Should I be looking to review monthly/yearly etc?
I don’t think you can give specific advice on what to invest in here but is an IFA in general the type of person to speak to or are there pension specialists?
I don’t have a huge pot currently but got a fair few years to go hopefully and want to make sure I balance risk with compound growth - Plus monthly available going into it is increasing reasonably now earnings are increasing
I am currently 75% in the default Scottish widows balanced portfolio and 25% in Morgan Stanley global brands but no real idea as to what to do next or even how risky (or not) this balance currently is! Any pointers at all?
Hi guys. A bucketing question.
My wife and I have between us 2 DC pensions, a SIPP and an ISA. Currently they're all invested in equity index funds but I'm looking to shift a % into bond funds as we get closer to retirement.
I'm struggling to understand whether I can achieve the reallocation via just one pot or will I should do it across all four.
Also in the mix, I have a DB pension which allows the pension commencement lump sum to be taken from the linked DC pot.
Do I need to work out the sequence of drawdowns from each pot individually AND work out whether I should take the DB early?
My wife and I have between us 2 DC pensions, a SIPP and an ISA. Currently they're all invested in equity index funds but I'm looking to shift a % into bond funds as we get closer to retirement.
I'm struggling to understand whether I can achieve the reallocation via just one pot or will I should do it across all four.
Also in the mix, I have a DB pension which allows the pension commencement lump sum to be taken from the linked DC pot.
Do I need to work out the sequence of drawdowns from each pot individually AND work out whether I should take the DB early?
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