Pension advice

Randsta

New member

Aug 8, 2011

2,997

Eastbourne

• Oct 3, 2017

• #1

Hi lovely people I was wondering if I could pick your brains on the topic of pensions? I've got a work one but also want to double up and get a private pension and wanted to know what other people are doing / recommend? does anyone have any experience / advice about SIPP's? are they a good / bad idea?
I've done some googling and there is some good advise out there but want to see what you guys think.....
Cheers guys

 

nicko31

Well-known member

Jan 7, 2010

17,562

Gods country fortnightly

• Oct 3, 2017

• #2

Suggest you find an IFA. SIPP's give you a lot of freedom that is for sure

One thing about pensions I've learnt is try and get your employer to agree to salary "exchange". Get them to pay your contribution direct to your pension provider and include the "employer NI" they will save, that will be £1.128 for every £1 PAYE. Any employer worth their salt should agree

 

LamieRobertson

Not awoke

Feb 3, 2008

46,667

SHOREHAM BY SEA

• Oct 3, 2017

• #3

Randsta said:

Hi lovely people I was wondering if I could pick your brains on the topic of pensions? I've got a work one but also want to double up and get a private pension and wanted to know what other people are doing / recommend? does anyone have any experience / advice about SIPP's? are they a good / bad idea?
I've done some googling and there is some good advise out there but want to see what you guys think.....
Cheers guys

Click to expand...

One of the things about SIPP's is you can make your own investment decisions..is that something you are informed enough to do?

 

S

Shropshire Seagull

Well-known member

Nov 5, 2004

8,496

Telford

• Oct 3, 2017

• #4

I started a SIPP last year.
There were several aspects that attracted me to it, in no particular order:

1. I'm 57 and hope to retire at 60 - I'm also a type 1 diabetic so don't assume I'll have a long-life [recon I'll do well to get to 75]
2. A SIPP is a personal asset so if/when I die, it's entire contents becomes part of my estate - i.e. the missus / kids get all of what's left - with my deferred occupational scheme, or if I'd started an annuity, they would die with me.
3. I work as a contractor under my own limited company - this allows me to make company contributions [up to £40k? pa] which I can offset against corporate tax [very tax efficient]
4. I use Hargreaves-Lansdown and as I'm not an investment specialist, I leave them to manage my fund. However, there are many options to align to you attitude to risk / reward.
5. I chose a low risk portfolio and its returning circa 10% - I'm happy with that as if I wanted a better return, I'd have to take riskier options and at my stage of life don't have lots of working years left to rebuild a fund if it made a big loss one year.
6. A SIPP has great flexibility in its draw-down options - first 25% tax free. Basically I'm in control of how I invest and then spend it.

Of course, I'm no IFA and you will want something that aligns to your own needs [which may well be different to mine] - so seek advice. I'd suggest a pensions specialist over an IFA - my experience of IFAs is they tend to be a jack-of-all-trades [some knowledge of a very wide range of financial products] - if you need specific pensions advice, find someone who specialises in this sector and knows all the products / options well.

 

S

Shropshire Seagull

Well-known member

Nov 5, 2004

8,496

Telford

• Oct 3, 2017

• #5

LamieRobertson said:

One of the things about SIPP's is you can make your own investment decisions..is that something you are informed enough to do?

Click to expand...

Yes, that's true - but if you're not comfortable managing your SIPP fund by yourself, there are options for managed funds - not just one type [at least with Hargreaves-Lansdown and SIPP options

 

Charlies Shinpad

New member

Jul 5, 2003

4,415

Oakford in Devon

• Oct 3, 2017

• #6

I buy shares in a certain company and they have increased in value by 40% in the last 5 years

 

Notters

Well-known member

Oct 20, 2003

24,869

Guiseley

• Oct 3, 2017

• #7

Depends what work pension you have surely? Can you not pay additional into that?

Admittedly if it's a crap government-backed one like I have then you probably wouldn't want to.

 

T

timbha

Well-known member

Jul 5, 2003

9,884

Sussex

• Oct 3, 2017

• #8

Charlies Shinpad said:

I buy shares in a certain company and they have increased in value by 40% in the last 5 years

Click to expand...

That's a very good return. Aren't you tempted to crystallise/lock in some of the profits? Depends on your age, risk profile, other investments.

 

dazzer6666

Well-known member

NSC Patron

Mar 27, 2013

52,356

Burgess Hill

• Oct 3, 2017

• #9

Bit of a minefield as so many factors to take into account and so many options. A 'no obligation' initial chat with a suitable IFA would be a sound place to start - many will give you a free consultation before you commit to anything which will definitely clear some of the fog for you. Can recommend [MENTION=12697]Steve Foster[/MENTION]

 

nail-Z

Well-known member

Jul 10, 2003

2,969

North Somerset

• Oct 3, 2017

• #10

My £700 investment in Brewdog in 2009 is now valued at over £20000. At that rate when I’m ready to retire in about another 10 years it’ll be £600,000.

It’s not like the price of shares can go down is it?

What?