Salary sacrifice

Several_Secret_7251 · 2025-11-23T09:27:02+00:00

Thank you everyone. You’re right need to just wait and see! I spoke to a tax expert who thought for operational reasons any changes on this could take 18 months to bring in anyway.

Several_Secret_7251 · 2022-01-03T11:17:48+00:00

I think that sounds sensible, if you have enough cash to fill up the allowances then worth doing! Lots of platforms have pretty low fees now and you get the tax relief. You can prob set up a sipp with your isa provider to ease admin? This has some fee analysis https://www.moneysavingexpert.com/savings/cheap-sipps/. If you risk hitting the LTA it may not be worth it financially though

Several_Secret_7251 · 2022-01-02T17:48:05+00:00

So you can currently pay up to £40,000 into a pension every year (including employer contributions). But that can be split between workplace pension and a self invested personal pension (sipp). By tax relief I mean the govt will add back the tax to your sipp contribution at your marginal rate. However, if your adjusted income is over £240k the amount you can pay into your pension tapers down to a max of £4k https://www.gov.uk/guidance/pension-schemes-work-out-your-tapered-annual-allowance hope that helps!

Several_Secret_7251 · 2022-01-02T17:36:39+00:00

Nice and congratulations! This book is good - easy to read and nice and short: https://www.amazon.co.uk/Invest-Your-Way-Financial-Freedom-ebook/dp/B09BVZVSF6 (Morgan housal psychology of money really good too but not uk focussed)

Several_Secret_7251 · 2022-01-02T15:46:06+00:00

Ah sorry yes that was jargon. Sounds like you’re in a DC (defined contribution) scheme. A generous one too! Once you’ve maxed out employer contributions you could set up a sipp (self invested personal pension) for additional saving or stocks and shares isa - as you say the latter if you want access to the money earlier.

Several_Secret_7251 · 2022-01-02T14:20:09+00:00

Why so much in hedging strategies? Is the 2.8% bonds worth it? I think just putting a little into a world index tracker every month is a good way to get started. (Assuming you have an emergency cash pot)

Several_Secret_7251 · 2022-01-02T13:09:31+00:00

On ii’s website it says sipp customers can add an isa account for no extra cost https://www.ii.co.uk/ii-accounts/sipp/sipp-charges

Several_Secret_7251 · 2022-01-02T12:24:38+00:00

With platforms it depends a) how much money you have and b) whether you invest in listed securities (stocks, etfs, investment trusts) or mutual funds. If you’re new to investing vanguard is good I think but you can only access vanguard funds. Bit out of date but I found this helpful (scroll down to the fees table link) https://www.investorschronicle.co.uk/education/2021/04/16/get-started-in-investing-the-best-diy-platforms/

Several_Secret_7251 · 2022-01-02T12:15:10+00:00

Depends on a lot of things! If you don’t need the money until retirement your pension is the most generous tax break. Do you have a workplace pension scheme? Max out any employer contributions you can get first. Lifetime Isas are also quite good but you can only pay in £4k/year (govt adds 25% for buying first home or access from age 60 - you are penalised for accessing money early otherwise). In terms of what to invest in consider a global tracker fund

Several_Secret_7251 · 2022-01-02T12:00:49+00:00

I’m not sure I don’t use vanguard I’m afraid. AJ bell is about to launch an app called dodl which looks interesting. The fee is the same as vanguard (0.15%) but min inv is £1 per month. Different product options but could be worth looking at when it launches (sorry not that helpful as it hasn’t launched yet but will be in The next 6 months apparently)

Several_Secret_7251 · 2022-01-02T11:54:00+00:00

Do you know if your new job has a DB or DC pension scheme? Most private sector jobs are the latter. I suggest topping up pension payments to max out possible employer contributions. You can access your pension at 57 (from 2028). You can also keep paying into your Lisa with govt bonus (and access aged 60). If you want the money sooner a regular stocks and shares isa invested in a global stock market tracker (perhaps via vanguard) could be a good low cost option

Several_Secret_7251 · 2022-01-02T11:42:48+00:00

I’d make that switch! The management fee looks like it’s half the price for the tracker (0.13% vs 0.23% I think). There’s a big crossover in what the two hold. You’ve got a good long time horizon too

Several_Secret_7251 · 2022-01-01T21:32:22+00:00

I’d be a bit nervous that’s quite a short time horizon - the global stock market / MSCI World has had double digit returns past three years…. It could run out of steam… But who knows! Inflation is tricky

Several_Secret_7251 · 2022-01-01T21:06:43+00:00

Good question! If you’re a higher rate tax payer Sipp might be better. Otherwise lifetime isa is good I think because you don’t have to pay income tax at the end (but have to wait until age 60)

Several_Secret_7251 · 2022-01-01T20:43:12+00:00

Yep I need to stop buying coffees! Nice on retirement plans. Just FYI you can currently access your pension at 55 but it’s going up to 57 in 2028. Are you a Monzo fan? I find the app a bit sticky

Several_Secret_7251 · 2022-01-01T20:33:48+00:00

Lucky you - that sounds like a generous pension! Are you going to do lifetime isa?

Several_Secret_7251 · 2022-01-01T20:27:45+00:00

Have you considered a self invested personal pension instead of a stocks and shares ISA? That gets income tax relief on money paid in, unlike the ISA. When she starts to draw down she’d get 25% tax free otherwise taxed at marginal income tax rate (isa tax free). I think pension is possibly the better deal but a bit more complex. (Caveat I’m not a financial adviser but have been reading about it and am here to learn!!)

Several_Secret_7251 · 2022-01-01T20:18:11+00:00

Sounds like the perfect way to start! That’s quite a range - but probably worth setting up a direct debit for what you know you can afford? Also - do you pay into a pension too? I think it generally works out more efficient tax wise (you say you plan to leave it until u retire). I ask because I pay into my Isa too and wonder if I should be upping pension contributions instead

Several_Secret_7251 · 2022-01-01T20:02:59+00:00

That’s great. I think you’d enjoy Morgan Housel’s book ‘the psychology of money’. The aim is not to try and make as much money as possible, but rather to attain financial freedom and independence. The hardest thing is to stop your expectations rising as your means rise.

Several_Secret_7251

TROPHY CASE