You are reading a single comment by @ChasnotRobert and its replies.
Click here to read the full conversation.
-
My main pension is an occupational scheme so I don't have the option of a sipp there.
Other stuff is in ISAs, I need to look at whether tax relief on the way in (SIPP) would be better for me than tax relief on the way out (ISA).
ChasnotRobert-
Occupational pension should be prioritised as long the employers I contributing too.
Pensions have changed vastly recently you now no longer need to buy an annuity but can draw down from the pot. This is good for smaller pots.
Remember 25% of total valuation can be taken as tax free lump sum.
Another factor is that you can pass them on to children or beneficiary. At the moment if you die before 75 this is tax free too. I doubt that rule last tho.
wildwest
To outperform a low index tracker is unlikely by an active fund. That's a given.
But these target year funds unfortnely have pre determined dates where they move from high risk to low, mostly by selling stocks to buy bonds or hold cash.
This is where the flaw lays they will sell even if the markets is in crash mode. Studies have shown investors have lost 100millions of pounds through the poor timings of these funds.
Using very simplicity model you could make vast difference to what is most likely your largest savings pot.