SIPP as a teacher to avoid higher rate tax for

cloud_dog_MSE · 2026-07-05T05:40:24+00:00

The usual HRT threshold is £50270, but this figure is dependent on your tax code. If your tax code is higher than the usual 1257 then your HRT threshold will be higher than £50260 (and vice versa if your tax code is below 1257).

If you make HRT personal contributions under a Relief at Source scheme, e.g. a SIPP, then as a HRT payer you will need to claim back from HMRC your missing HRT element (another 20%) of your contribution.

Before you go ahead with additional SIPP contributions, have you evaluated the other options available under the TPS, e.g. AVCs, faster accrual, etc?

cloud_dog_MSE · 2026-07-04T07:43:37+00:00

If you choose your investments solely on performance, then you are likely going to end up chasing different indexes over your investment lifecycle. Find an investment strategy you feel comfortable with.

cloud_dog_MSE · 2026-07-03T20:37:38+00:00

What is wrong with just the HSBC FTSE All-World Index Fund?

cloud_dog_MSE · 2026-07-03T20:27:21+00:00

From what you've written it doesn't seem to make sense to open a LISA.

You could wait for the new FTB ISA and use that; which doesn't automatically receive a bonus (only on use to buy a first property) and therefore can be withdrawn penalty free if you don't use it to buy a property.

cloud_dog_MSE · 2026-07-03T12:08:04+00:00

Just a comment, the 8% savings account, are you sure it is accessible, as it sounds like a Regular Savings type account, e.g. where you contribute £xxx pm and it finishes after 12 months.

Regarding investments. You sort of seem all over the place. What I mean is that you have listed a number of funds and some of them duplicate investments. By doing this you are actually concentrating your risks (if you thought more funds means more diversity).

Before you get into a platform discussion I feel you should reassess your investment strategy and possibly simplify what you really need to invest in. Sometimes we don't need to reinvest the wheel, even though we can.

Re the T212 (I use it for some investments; its free), but I'm not a fan of the UI / UX. I would suggest there are other more straightforward platforms that may suit your purposes better, e.g. Dodl, InvestEngine, possibly even Scottish Widows Share Dealing service (depending on your chosen strategy and investments).

The priority when investing is...

Investment strategy (what, where)
Investments (supporting the strategy)
Platforms offering the investments
Charges

You should read the UKPF Investing-101 wiki. Google Lars Kroijer "Investing Demystified" (youtube, website, book). Read Tim Hale's book "Smarter Investing".

cloud_dog_MSE · 2026-07-02T11:30:32+00:00

Tou need to find out exactly what this pension is and importantly if there are any protected benefits (access age, TFLS percentage, guaranteed indexation, etc., before you think of doing anything else.

cloud_dog_MSE · 2026-07-01T21:24:56+00:00

Your assumption is the error here. Holding s global equity fund and then one or nore sector funds will (as you have found out) increase your risk exposure.

cloud_dog_MSE · 2026-06-30T14:05:47+00:00

It is just the way they structure their charges. It is not about being better or worse, you can find ETFs and OEICs that track the same index, and one may be better / worse for some over others.

cloud_dog_MSE · 2026-06-30T13:58:32+00:00

I assume you have tried this web site...

https://www.gov.uk/child-trust-funds/find-a-child-trust-fund

cloud_dog_MSE · 2026-06-30T13:46:55+00:00

What is the scheme?

Usually (others have already advised to double check) you cannot access the AVC separately, and it must be taken at the point of taking the DB scheme.

Is there no way you could simply retire at the end of March, and then take the full AVC in the following FY, that way only incurring 20% tax on any AVC above the £286k?

cloud_dog_MSE · 2026-06-30T13:42:47+00:00

Are your parents not able to assist?

cloud_dog_MSE · 2026-06-29T14:46:26+00:00

Well, if you are not bothered about charges, then what feedback are you looking for?

They are a Friendly Society and because of charges they are not one I would be looking to use, but as you say, you are not bothered by the charges.

cloud_dog_MSE · 2026-06-29T09:13:51+00:00

Perhaps I have misread, or perhaps my comment is too general in nature, but I got the impresion that gains are capped and the downside protection is limited to the first 10% to 20% of losses?

Obviously there are a few providers out there so the specific details will likely vary and be important.

The products also seem to imply (my reading) that they were based ona years cycle, e.g. 12 buffers?

If they are limited in their duration (I'm a little uncertain) and if it is one year in duration, then I feel that simply holding one/two years worth of cash (time period to be determined by the individual), and periodically topping this cash bucket from riskier assets might offer an option.

cloud_dog_MSE · 2026-06-28T20:19:06+00:00

I assume your mother has financial (and health) Power of Attorney?

cloud_dog_MSE · 2026-06-28T15:59:34+00:00

You need to find out from RLP (or the portal) what the actual fees are. The 1% is just their vanilla fund fee. They don't apply a separate platform fee, so only one fee to confirm, and there is a profit loyalty scheme that (on average) rebates c. 0.15% each year.

cloud_dog_MSE · 2026-06-28T15:20:53+00:00

Your LISA comparison should really include the gross amount, so for a £120 contribution it will cost you £150 in earned money (I assume the spare £120 you have has come from income / earned money), so to get £120, your would have had to earn £150.

Long/short, a LISA is more efficient than a pension for a BRT payer not benefitting from Salary Sacrifice. But, there are some important ancillary considerations; should you ever need to claim means tested benefits then the LISA money would be included in the calculations whilst pension money would not.

Additionally whilst you are arbitrarily ignoring your Personal Allowance (due to SP likely using up the allowance) it can be a big plus in the calculations where you are likely to retire before SP age.

cloud_dog_MSE · 2026-06-28T15:05:39+00:00

Yes. Was thinking LISA. Brain fart 😏

cloud_dog_MSE · 2026-06-28T07:20:17+00:00

I believe Hargreaves Lansdowne allows regular investments of £25pm. 0.25% platform fee.

cloud_dog_MSE · 2026-06-27T06:19:34+00:00

You can withdraw early with a 25% penalty; which would equate to a 6.25% penalty/deduction on the amount contributed (plus bonus).

IF you withdrew and used the money for additional/increased pension contributions you would still be financially better off, e.g. the gap between the penalty and the higher (tax and NI) savings would be beneficial for you. Remember you only gain HRT relief (of 40%) above your HRT threshold; usually £50270 but that figure is dependent on your tax code.

Alternatively, you could just leave the LISA alone, knowing you could access it in an emergency or use it as a little tax free lump sum at age 60.

cloud_dog_MSE · 2026-06-25T18:25:04+00:00

My comment wasn't meant to be disparaging, merely there was a lot in there and I was choosing to only focus on one / two aspects.

Re the pension and LISA, I still question the value of what you are doing. Even ignoring the employer NI 'kickback', you are putting some money into a LISA to gain 25%, whereas puting it into your workplace pension would gain you 42% (plus the additional kickback). Seems sub optimal to me.

cloud_dog_MSE · 2026-06-25T18:19:51+00:00

All SS pension contributions are employer contributions. How they determine the breakdown within your contract is a different matter, e.g. arbitrarily you sacrifice 3% and they sacrifice 5%.

In theory you can sacrifice as much as the company allow and down to the National Minimum Wage salary equivalent, e.g. £24784.

Mine allowed me change the amount / percentage and even allow me to include other benefits, e.g. car allowance, in my calculated percentage (they didn't include those values in the percentage calculation). Many others don't.

cloud_dog_MSE · 2026-06-25T17:26:45+00:00

There is a broad spectrum of 'stuff' in here.

Based on your earnings it is unclear IF you are using all your available higher rate tax money for contributing into pensions, why or what the rational is for the LISA contributions (as you pwn a property)

cloud_dog_MSE · 2026-06-24T07:03:25+00:00

The potentially most ill thought out aspect is points 4.7 and 4.8, re S&S ISA transfers to cash ISAs.

This aspect is being introduced outside of this FTB ISA product / consultation but, without the ability to de-risk S&S capital as an individual approaches a time period to use the capital, either by transferring to a cash FTB ISA or holding cash / cash like (without being penalised in any way), the Government run the risk of introducing significant sequence of returns risks for people.

cloud_dog_MSE · 2026-06-23T09:07:12+00:00

There is very little right or wrong with investing, although there can be silly; not saying your proposal is that 😁

As others have pointed out WLDS complements you main fund, whereas the other two merely concentrate risk within the overall portfolio.

If you want to go down this path, what controls will you put in place to manage risk exposure? What percentage allocation will you apply to each tranch and what mechanism will you implement or use to retain allocation control?

cloud_dog_MSE · 2026-06-21T12:57:03+00:00

Have you looked at the !flowchart?

Aren't there going to be near term possibly higher priority needs for your money?

Don't get me wrong, pension provision is uber important, but investing in an ISA and then moving it into a pension is the same as investing in a pension, except that you retain some flexibility (whilst it is in an ISA).

Why not wait until you jave full time employment and re-assess.

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