Just another thought to throw into the discussion.
A LISA might be worth considering as it can be used as a āpension potā from the date of your 60th birthday.
For anyone who might wish to reduce their hours, go part-time etc., this might be a useful tool to help bridge the gap until State Pension Age.
Itās been a while since I last did any serious reading around annuities. Whilst there is a simplicity and convenience around the purchase of an annuity and then receiving a set income, you are in effect handing over your money to someone else and itās gone for good.
On the other hand, managing your own SIPP and drawdown need not be complicated and you retain control and ownership of your money
One of my better decisions was to start paying what were quite modest amounts into a Virgin Stakeholder pension when my children were still in their early teens. We have since moved away from Virgin to different providers but the power of compounding means that now respectively aged 32 and 26, they have a pretty decent sum building up to supplement their workplace pensions, so that they might at least have the option of retiring early should they wish to.
If youāre under 40 and eligible for a LISA thatās a decent option, however the contributions are quite limited in comparison to a SIPP (Ā£4000 vs Ā£60000).
Iāve very recently started to worry about my pension and have been watching countless YouTube videos on what I should be doing.
TLDR: Iām going to be transferring everything I can into a Freetrade SIP and sticking it all into Invescoās FTSE All World accumulation fund for the next 20+ years and keeping my .
Iām willing to go high risk given the time horizon and want to be well diversified, including emerging economies. The fee is also quite a bit lower than Vanguardās All World, which doesnāt include emerging markets.
Iāve started upping my contributions over the last few years as my salary has improved. The tax relief is a huge bonus but my work only match 4%. Those of you getting 20+% matches legitimately have a reason to stay for life .
Up till now itās been challenging with buying the house, having kids and the Mrs not working. But weāre finally getting into a decent spot, albeit interest rates have gone the wrong way just as we were in a good position to remortgage!
Wish Iād done this ten years ago, but the next best time is today.
It depends on the amounts youāre talking about really. For under Ā£20k, Hargreaves Lansdowne is the cheapest for funds as itās 0.45% but no dealing charges on funds.
Over that, I find that AJ Bell works out better as itās 0.25% but Ā£1.50 dealing on funds and Ā£5 on shares.
The AJ Bell SIPP is so cheap that I found that a number of pension advisors wouldnāt believe me that it was only Ā£100/year for a pension.
If youāre starting out with the all world fund, Iād use Hargreaves initially until you get to Ā£20k or so, then switch it. Thatāll save you Ā£100 or so per year.
Iāve been with them over 20 years now. I have looked elsewhere over the years but not found better.
I was with Freetrade for a while but T212 is much better and cheaper for the ISA. Iām wary of having everything in one basket, so T212 for the ISA, AJB for the SIPP. Well, also Standard Life but thatās for the work pension and I transfer it into AJB every couple of years when itās built up to a sensible amount.
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