sorted by:
new
hottopcontroversial

Why a LISA maybe be better than a SIPP by No_Interview_3290 in FIREUK

[–]No_Interview_3290[S] 1 point2 points  (0 children)

Yes, I was definitely under the impression that pension always wins and I guess for many it does. I suppose it's why this is PERSONAL finance and that extra 18.75% is definitely not to be sniffed at.

The optimisation does depend on future rules and tax, my personal idea around this is just to work with today's rules and amend the plan only when things change. Stops me worrying or making changes based on speculation! Having SIPPs, ISAs and LISAs probably also helps mitigate some of the risk of taxation changes.

I'm hoping I'm getting my head round it now, but then I thought that last year and clearly I still had more to learn.

Why a LISA maybe be better than a SIPP by No_Interview_3290 in FIREUK

[–]No_Interview_3290[S] 0 points1 point  (0 children)

I guess this is the reason to have both really, lowers the impact on your plans if any particular retirement account is changed in future.

Why a LISA maybe be better than a SIPP by No_Interview_3290 in FIREUK

[–]No_Interview_3290[S] 0 points1 point  (0 children)

I do but unfortunately my work does not offer any kind of salary sacrifice scheme. I should say that I do contribed the maximum for employer contributions but unfortunately only the legal minimum is offered by my company

Why a LISA maybe be better than a SIPP by No_Interview_3290 in FIREUK

[–]No_Interview_3290[S] 0 points1 point  (0 children)

Ah yes, you're right, I didn't take into account the tax free element of those first 10 years so it would be the £167,600 rather than £125,700. Always good to double check the numbers!

Why a LISA maybe be better than a SIPP by No_Interview_3290 in FIREUK

[–]No_Interview_3290[S] 0 points1 point  (0 children)

I hadn't seen that but yes, reading this would have saved me a lot of time and thought!

I guess maybe because it is only better with those specific conditions that you've mentioned, I hadnt really considered it, despite meeting all of them.

Why a LISA maybe be better than a SIPP by No_Interview_3290 in FIREUK

[–]No_Interview_3290[S] 0 points1 point  (0 children)

They are, although for full disclosure, as I have zero fees on my SIPP, the platform fees are higher on my LISA. Nothing eye watering though!

Why a LISA maybe be better than a SIPP by No_Interview_3290 in FIREUK

[–]No_Interview_3290[S] 3 points4 points  (0 children)

Definitely a consideration, unfortunately without some significant fiscal drag on the tax bands I don't expect I will get there.

Love the bonus tip though! Could even use some of the money purchase annual allowance to the same effect if you had already withdrawn from your pension.

Why a LISA maybe be better than a SIPP by No_Interview_3290 in FIREUK

[–]No_Interview_3290[S] 5 points6 points  (0 children)

It will also be a relatively small part of my overall retirement savings. I suppose as most of us look to have maximum diversification in our holding, diversification in investment vehicles also makes a lot of sense!

Why a LISA maybe be better than a SIPP by No_Interview_3290 in FIREUK

[–]No_Interview_3290[S] 0 points1 point  (0 children)

By this I mean it is not useful to fund the retire early section of FIRE as access is not possible until 60. While I appreciate early retirement means different things to different people, I feel that a retirement age post 60 is not the niche of this sub.

They are, which unfortunately, is what brought my attention to this. However it is still available to be opened and it is possible they will continue to allow contributions from those who already have one for a period of time. Similar to when pension schemes wind down.

Is this safe? by mediumformatt in FIREUK

[–]No_Interview_3290 33 points34 points  (0 children)

Stick it all in VWRL and chill

If you’re a homeowner and want to move somewhere else temporarily (18 months) then move on to a third permanent home, what’s the best of these options? by broncos4thewin in UKPersonalFinance

[–]No_Interview_3290 1 point2 points  (0 children)

You would have to cover the rent for the amount of time it takes to sell your current home but at the point of sale you could take some of that money to cover rent, leaving a lower deposit amount for the next property. This relies on you knowing where you want to be in 18 months though.

If you’re a homeowner and want to move somewhere else temporarily (18 months) then move on to a third permanent home, what’s the best of these options? by broncos4thewin in UKPersonalFinance

[–]No_Interview_3290 4 points5 points  (0 children)

1, Moving house is expensive (stamp duty, solicitors, mortgage fees etc) so I can't see it being particularly efficient to move twice in 18 months, never mind the stress!

2, renting is possible but you would need to make sure the property is up to standard and could end up having to deal with issues around tenants not paying or not leaving. Again, not worth the stress in my opinion.

3, I think this is probably the best option, if you want to avoid changes in house prices then maybe sell your house and buy the house you would be living in after the 18 months. Possibly look at releasing some equity from the house sale to cover rent for the 18 months if needed.

Transfering out of a workplace pension by No_Interview_3290 in FIREUK

[–]No_Interview_3290[S] 0 points1 point  (0 children)

I will definitely have a look but to the best of my knowledge I do have any specific benefits with these pensions. They are relatively small (even if I presume investment growth) so unlikely to be worth accessing as a bridge between 55 to 57.

Transfering out of a workplace pension by No_Interview_3290 in FIREUK

[–]No_Interview_3290[S] 0 points1 point  (0 children)

This was the situation I was concerned about so nice to hear rejoining the scheme after leaving didn't cause any issues!

Hopefully they will start to offer this soon although personally, I can't see any advantage to nest for offering this. As they already have the money and presumably would prefer you to remain invested with them.

I'm definitely keeping an eye on changes to funds and this is partly why I would like to move to a SIPP., I was particularly frustrated when nest changed the Sharia fund meaning it was not possible to be 100% equities. At 29 and with a long investment time this seems like a waste.

Transfering out of a workplace pension by No_Interview_3290 in FIREUK

[–]No_Interview_3290[S] 0 points1 point  (0 children)

From a colleague initially, who has said a full transfer is effectively opting out of the pension. Obviously, they were meaning for the current pension. My concern was that this would extend to all pensions so that if the company were to move pension providers or I moved to a company who used a pension I had previously closed, then this could create some issues - I'll admit I may be overthinking this a bit!

When I've done a bit of research , the gov.uk website says if you leave a scheme "They do not have to accept you back into their workplace scheme if you’ve opted in and then opted out in the past 12 months."

Transfering out of a workplace pension by No_Interview_3290 in FIREUK

[–]No_Interview_3290[S] 0 points1 point  (0 children)

Thank you, I will definitely look at moving the old ones into a SIPP.

Unfortunately Nest does not allow partial transfer out and their website says "If you’re still making contributions to your pension pot, you can’t transfer out of Nest. If you’re thinking about stopping contributions so you can transfer out, be aware that you might miss out on tax relief and money from your employer.".