I knew this was possible, but literally this is the first instance Iām witnessing it (albeit through an online forum) Would you at least not agree this is an exception rather then the standard in UK market?
Yes. again most of the savings come from NI contributions. Tax savings are penny for penny same (even if SS changes your tax band) Again Iād love to have the SS since the savings are instant instead of filling in self assessment a year later. (There are also other advantages of keeping your pre-tax salary low but not going to digress into that)
I was doing this when I was contracting for marine corps but that was decades ago and never had any other chance to do it.
I think if implemented the āpension pot for lifeā thing tories brought will effectively mean every employee will have to commit to your choice of a pension provider though.
The approach Iām taking is to SS into my workplace pension then each year I do a transfer out to my SIPP, leaving a grand or two behind to keep the thing alive. Means I get the NI and 40% savings without having to bother with self assessment.
yeah me too as my employer refuses to contribute directly to SIPP, they can do workplace one (on L&G about 20 funds selection).
So partial transfer seems the only way to go. I think there is no limit for the transfer so I plan to do it every quarter (so 4 times a year rather than once a year).
I would also leave a few hundred at most, I think as long as it is a partial transfer, not a full transfer, they bond to leave something in your account.
The main thing to check is that your workplace pension doesnāt use segments. Most modern ones donāt, but older ones might - and they can result in having to close your pension after too many transfers as you can run out of them. Details can be found here: Confused about pension segments ā MoneySavingExpert Forum
Same here. Would the T212 team be able to provide an indicative list of features that the SIPP will aim to deliver from the start?
I believe it is key to have the option to contribute to the pension via the employer as a gross salary contribution.
Please advise.
Given reforming pension tax relief appears to be an option the chancellor is considering, I can imagine putting a lot of effort into supporting direct employer contributions might not be high on the agenda until thereās a bit more clarity on where things are headedā¦
Iāll try to not go political on this, but Iād be extremely happy if they donāt completely ruin personal pensions. Especially after Keir Starmer suggested a change to the tax free lump sums. Which was denied only by other sources from Labour party(not Starmer himself) and I quote āit was an old fashioned mistakeā
Indeed. Itās crazy for something that people need to plan 40 years in advance for gets fiddled with so much. Every analysis Iāve seen has said that itās madness to try and change things unless you do away with salary sacrifice completely as the accounting becomes almost impossible to administer, and if you do away with that, pensions become dramatically less attractive given the restrictions on access.
Given Iāve also heard things about capping ISA pots at something like 100k and maybe even reducing the annual limits, where is the incentive to actually save for your future going to come from?
Utter madness, especially given they apparently want levels of investing to dramatically increaseā¦
@qwerki omg stop baiting me
I want to talk about this I do but itās impossible to do it without getting political and I think we really should keep āIs there a SIPP possibilityā thread sterile of politics
I want to complain about the insane amount of tax Iām already paying and want to link to āmorning showsā showing where those taxes are going.
I think gov will more likely fiddle the state pension (push back the age, reduce the vale) Iām working off the principle I will most likely never receive a state pension, not sure they can do too much to personal pensions if they plan to raid the state pension
I know itās not what you wanted to hear, but we are slightly delaying the launch. We aim to introduce SIPPs during Q1 of next year, but we canāt commit to a more specific deadline at this point.
Hi, itās almost a month on since your last update. Is there any chance the SIPP product will be launched ahead of the UK Autumn budget date (30th October) ? Asking for a friendā¦
Thanks for the valued updates, literally anything you can give us is always appreciated!
I wanted to check that In Specie transfers of our existing SIPPās will be possible at launch? Very few will have SIPPās with cash in, or want to transfer cash. Itās all about the stocks, and specifically US stocks to avoid the hefty FX fees elsewhere
