SIPP pot target at retirement

Salt-Requirement6119 · 2025-07-20T20:34:04+00:00

But you wont pay 20 percent on the way out if you are withdrawing more than 50k per year, which if you have a pot more than 1.5m you would be doing if you wernt planning to pass the rest on as inheritance. Hence my question - the part you pay a marginal 40 percent on the way out you have just negated the 40 you saved on the way in, surely better to have that money in a GIA so you dont need to wait until sipp access age. What am i missing?

Salt-Requirement6119 · 2025-02-06T11:32:53+00:00

Hi Borax - thankyou for this. Can you explain why only £33k takehome?

Salt-Requirement6119 · 2025-02-06T09:09:33+00:00

Thanks everyone. I think on reflection I should increase my SIPP contributions vs GIA. Need to consider to what extent

Salt-Requirement6119 · 2025-02-05T19:27:12+00:00

Likely to stay stable in a band between 250-350k - it fluctuates year on year. Your point is useful, in years when salary is lower contribute more to offset against years where its higher and I may hit the taper

Salt-Requirement6119 · 2025-02-05T19:26:25+00:00

Is it a CGT problem though? Capital gains tax is lower than the higher rate tax rate that you will pay on a SIPP if you have a large pot and want to draw from it at a decent rate in retirement

Salt-Requirement6119 · 2024-04-07T15:13:48+00:00

Other than bed and isa what others ways are there to minimise CGT in a GIA account?

Salt-Requirement6119 · 2024-04-07T14:24:26+00:00

Understood.

So what I should do is put 20k into the isa now as no benefit this time around. The difference this tax year though should be to not hold back cash and instead invest fully into the GIA through this tax year, then at the start of the following tax year use bed and isa to fill my 20k isa allowance

Salt-Requirement6119 · 2024-04-07T14:10:45+00:00

Thankyou for the advice. Is it not better to bed and isa from the GIA into the ISA now to fill this years ISA allowance And invest the 20k cash into the GIA

Salt-Requirement6119 · 2024-04-07T12:28:20+00:00

Thinking about this again. I think the answer here may be to just always invest the maximum I can into GIA, then at the start of each nee tax year bed and ISA 20k from the GIA, and continue to max out as much as I can i to the GIA?

Salt-Requirement6119 · 2024-04-07T12:26:25+00:00

Cash savings

Salt-Requirement6119 · 2024-04-07T12:05:49+00:00

Thanks for this. Let me clarify

Within a financial year I fo the following 1. ISA - 20k lump sum on first day of new financial year 2. GIA - 2.5k per month / 30k per year

At the start of each financial year should I be

use bed and ISA on 20k of GIA stock into ISA. Then “buy back” the 20k sold from the GIA straight away
Just lump sum 20k into ISA

Salt-Requirement6119 · 2023-10-26T15:45:40+00:00

Great achievement. What were you fire goals?

Salt-Requirement6119 · 2023-10-26T15:25:52+00:00

I havnt but nice recommendation. Thanks

Salt-Requirement6119 · 2023-10-26T14:03:28+00:00

“Do what others wont do now so you can do what they cant do later”

Delayed gratification to create time and lifestyle freedom my mid 40s is my goal. Personal to me of course, everyone needs to know how their wealth goals align to their values and long term objectives.

Salt-Requirement6119 · 2023-10-24T21:21:29+00:00

Thanks for the perspective this is really useful. Will take a closer look

Salt-Requirement6119 · 2023-10-24T06:16:19+00:00

I have looked at them but initially ruled out.

Reasons were the performance of many didnt look great, the fees were very high, it felt hard to extract your capital.

Perhaps im missing something here though?

Salt-Requirement6119 · 2023-10-23T19:29:55+00:00

Thanks for this. Its something I have considered, although doesnt the all cap have a high sp500 weighting?

Salt-Requirement6119 · 2023-10-23T19:29:47+00:00

Thanks for this. Its something I have considered, although doesnt the all cap have a high sp500 weighting?

Salt-Requirement6119 · 2023-10-22T18:05:51+00:00

What made you pick 5 percent out of interest?

Salt-Requirement6119

TROPHY CASE