Not always true. Mine are post tax, and I then get taxed on the diff between buy and discount as if it was income.
Pensions. Earning over 50k
- Thread starter 413x
- Start date
Associate
Some other things to consider OP:
- ensure you get the maximum matched contribution from your employer, as it's free money.
- child benefit tapering if you have children
- other salary sacrifice arrangements you may have - company share schemes, healthcare, car etc
- login to your pension provider & see where the money is invested. It might be in a fairly high fee fund. Consider selecting a cheaper global tracker or similar, or transfer to a SIPP
- the point you get access to a private pension is closer than you think!
- ensure you get the maximum matched contribution from your employer, as it's free money.
- child benefit tapering if you have children
- other salary sacrifice arrangements you may have - company share schemes, healthcare, car etc
- login to your pension provider & see where the money is invested. It might be in a fairly high fee fund. Consider selecting a cheaper global tracker or similar, or transfer to a SIPP
- the point you get access to a private pension is closer than you think!
Much appreciated bud!
-Yeah I max that out already
-no kids here and none planned.
-I do have private healthcare but not taking up the electric car thing. (they have one for EVs)
-I do need to check this.
I have so many pension pots from jobs
Soldato
consolidating the random pension pots into a sipp is a reasonable thing to do (I do it)
but for your current employment just salary sacrifice into their scheme, can always transfer it if/when you don't work there anymore.
you gotta have some discipline though, don't gamble your pension, get some boring trackers and leave it (can elaborate on how I asset allocate in vanguard sipp if helpful)
but for your current employment just salary sacrifice into their scheme, can always transfer it if/when you don't work there anymore.
you gotta have some discipline though, don't gamble your pension, get some boring trackers and leave it (can elaborate on how I asset allocate in vanguard sipp if helpful)
Oh yeah absolutely I would not be doing individual shares.
I'll probably got for vanguard.
Some of thier etfs have done pretty well over the decade. Taking risks in an isa is a bit different to pension.
It's been increased to £60k.Ya but you can only put 40k a year
Also depends how much you've put in past 3 years, if less than the threshold then you can 'carry over' to some extent, I've put over £40k in before. But like I said, it's been a faff with HMRC, maybe because I'm not that au fait with the 'correct' or 'best' way to go about it.
You can also put more in anyway, you just don't get the tax relief (maybe jaybee just wants to build his pension above and beyond the tax efficiencies). That's the bit I'm finding hard, getting HMRC to pay me back after doing one off payments, using some of prior year allowance etc rather than just having it handled at source.
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Just wait until HMRC put something through your letterbox claiming in big bold font "YOU HAVE PAID TOO LITTLE TAX". Literally the words they use and then I have to correct them that I've paid too much tax and they owe me money, not the other way round.
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413x don't mean to hijack the thread but I'd like to ask a pension question. I suspect answers will be to consult a financial advisor but...
I probably have like 5-10 pension pots over the years of working at different companies. Some will have literally peanuts in. Others significant amounts. Is it generally better to keep them all as individual pots, or combine them? How does one come to any conclusions as to what to do?
I probably have like 5-10 pension pots over the years of working at different companies. Some will have literally peanuts in. Others significant amounts. Is it generally better to keep them all as individual pots, or combine them? How does one come to any conclusions as to what to do?
Soldato
technically you don't have to do anything. but if the clutter annoys you, or some of them aren't great deals, then consolidation looks attractive.
in that case you first have to check if they let you transfer without penalty (most do these days but it's not a given), if they do then you can consolidate them to make it easier to manage / lower fees / etc.
if there's a transfer penalty you'll have to weigh it up, might be better to leave it.
Don't worry. I have the same issue!
No idea haven't looked at them if I'm honest!
Soldato
shouldn't happen, unless it's really badly invested, or not invested at all, or the fees are ridic.
probably worth getting it all in a spreadsheet for starters
provider, account number, balance, charges(platform+fund), how invested/risk, transfer fee
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Slightly unrelated but did anyone get a letter from Aviva in the last few weeks saying they are going to transfer a bunch of their trackers out of arms, coal mining and tobacco companies on ESG grounds, and charge you 0.04% for doing so?
If my pension provider is going to make moral decisions on my behalf that is one thing, but to charge me for it another!
I might need to start a new thread soon asking for some SIPP recommendations
If my pension provider is going to make moral decisions on my behalf that is one thing, but to charge me for it another!
I might need to start a new thread soon asking for some SIPP recommendations
Slightly unrelated but did anyone get a letter from Aviva in the last few weeks saying they are going to transfer a bunch of their trackers out of arms, coal mining and tobacco companies on ESG grounds, and charge you 0.04% for doing so?
If my pension provider is going to make moral decisions on my behalf that is one thing, but to charge me for it another!
I might need to start a new thread soon asking for some SIPP recommendations
Part of me is outraged. Part of me wishes they didn't tell you and just did it.
As a shareholder in AV. The more they can charge the better.
Damn it capitalism! Don't steal my soul.
Combine them, whatever small fees you might incur in combining them is outweighed by the life admin hassle you're saving yourself.
So poorly informed. No one ever do this without actually looking at numbers.
Soldato
I’m in the same boat, I just put in enough extra percentage wise into my work pension and work share plan to place me under the 40% bracket.
We can adjust our pension contributions to as much as we want, it’s just that it gets locked away until retirement. Anything we add to it up to 14.5 percent we get NI contribution reduced and added to our pension too.
My bonus is likely going to take me way over, but we can choose to make a lump sum payment into my pension pot that month. Just got to see what the credit card bill looks like that month.
just with the cost of living.. it’s hard to reduce the amount I need to take home to cover all the bills and investments. The government not rising the threshold is just a stealth tax, but a lot of people will scream first world problem if you talk about it.
As you may know I’ve got my person stocks and shares ISA, stocks and shares, premium bonds.. that I pay into with what I take home.
I’ve looked at a SIPP and it’s a lot of paper work for the amount of that I could contribute and with it being locked away, unless you want the tax relief taken off you.. I for now would rather just stuck it up and have the ability to liquidate my stocks and shares if needed.
We can adjust our pension contributions to as much as we want, it’s just that it gets locked away until retirement. Anything we add to it up to 14.5 percent we get NI contribution reduced and added to our pension too.
My bonus is likely going to take me way over, but we can choose to make a lump sum payment into my pension pot that month. Just got to see what the credit card bill looks like that month.
just with the cost of living.. it’s hard to reduce the amount I need to take home to cover all the bills and investments. The government not rising the threshold is just a stealth tax, but a lot of people will scream first world problem if you talk about it.
As you may know I’ve got my person stocks and shares ISA, stocks and shares, premium bonds.. that I pay into with what I take home.
I’ve looked at a SIPP and it’s a lot of paper work for the amount of that I could contribute and with it being locked away, unless you want the tax relief taken off you.. I for now would rather just stuck it up and have the ability to liquidate my stocks and shares if needed.