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Pension advice needed.


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Hello

 

As a young man, I never really paid attention to pensions, or savings. Over the years I've bounced between several jobs and companies and never bothered to take pension pots from one place to another.

Now in my 30's I have to start taking this more seriously. First thing I need to do is grab all the small pots and paltry pension bits I've left and bring them into one place.

Only question is where to? Suggestions anyone?

Also, I have a ltd co, for contracting, I got a contract recently so I count myself lucky. Can my ltd co pay my pension into a SIPP, and if so what SIPP?

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Inspired by the credit deflation thread I put 32k from a couple of old work pensions into a sipp the other week and bought oil and telecom shares (interactive investors). It shot upto 37k last week

As a young man??

Generally it's people who have not been investors who fall for such things. I have been actively investing for thirty years and have bought several absolute lemons in that time; but the ones that

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56 minutes ago, No One said:

Hello

 

As a young man, I never really paid attention to pensions, or savings. Over the years I've bounced between several jobs and companies and never bothered to take pension pots from one place to another.

Now in my 30's I have to start taking this more seriously. First thing I need to do is grab all the small pots and paltry pension bits I've left and bring them into one place.

Only question is where to? Suggestions anyone?

Also, I have a ltd co, for contracting, I got a contract recently so I count myself lucky. Can my ltd co pay my pension into a SIPP, and if so what SIPP?

Yes track down all your pensions via the government pension tracker app.

https://www.gov.uk/find-pension-contact-details

My partner didn’t have a clue about all hers, I managed to track them all down and transfer them all to a H&L SIPP.

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1 hour ago, No One said:

Hello

 

As a young man, I never really paid attention to pensions, or savings. Over the years I've bounced between several jobs and companies and never bothered to take pension pots from one place to another.

Now in my 30's I have to start taking this more seriously. First thing I need to do is grab all the small pots and paltry pension bits I've left and bring them into one place.

Only question is where to? Suggestions anyone?

Also, I have a ltd co, for contracting, I got a contract recently so I count myself lucky. Can my ltd co pay my pension into a SIPP, and if so what SIPP?

Have a look in the basement forums here.

Ltd company is good for pension. Take what you need for income (and filling your ISA if thats part of your plan) then stick the rest in SIPP. Pay 0 corporation tax

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4 hours ago, No One said:

Hello

 

As a young man, I never really paid attention to pensions, or savings. Over the years I've bounced between several jobs and companies and never bothered to take pension pots from one place to another.

Now in my 30's I have to start taking this more seriously. First thing I need to do is grab all the small pots and paltry pension bits I've left and bring them into one place.

Only question is where to? Suggestions anyone?

Also, I have a ltd co, for contracting, I got a contract recently so I count myself lucky. Can my ltd co pay my pension into a SIPP, and if so what SIPP?

Under the mattress. In precious metal.  Do not, under any circumstances, trust the system 

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18 minutes ago, lid said:

I put 32k from a couple of old work pensions into a sipp the other week and bought oil and telecom shares (interactive investors). It shot upto 37k last week:o

Piece of piss this investing larkxD

That reminds me; I'd meant to ask, what are the recommended platforms for buying shares? I'd be buying to hold long term.

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5 minutes ago, JoeDavola said:

That reminds me; I'd meant to ask, what are the recommended platforms for buying shares? I'd be buying to hold long term.

No idea really I went with them cos of the fixed fees. I'd imagine if you choose the well known ones they're all much of a muchness. Incidentally they did hold up well with last week's volatility. This is not advice etc

Edited by lid
They're
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Just now, lid said:

No idea really I went with them cos of the fixed fees. I'd imagine if you choose the well known ones there all much of a muchness. Incidentally they did hold up well with last week's volatility. This is not advice etc

Would it matter whether I wanted to bung the stocks into an ISA allowance?

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4 minutes ago, JoeDavola said:

Would it matter whether I wanted to bung the stocks into an ISA allowance?

You have to sell and repurchase to do this.  I did this over several years to clear down my taxable share account into my ISA.

It's known as "bed and breakfasting" and it is an offered feature of the HL platform.

My Dad has also done this over the last few years at my recommendation and has his all in an ISA now.

Edited by Frank Hovis
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3 hours ago, reformed nice guy said:

Have a look in the basement forums here.

Ltd company is good for pension. Take what you need for income (and filling your ISA if thats part of your plan) then stick the rest in SIPP. Pay 0 corporation tax

Do you do this @reformed nice guy?

I was looking into this just before the china virus.  Thinking I could direct corporation tax into a SIPP.  I had a conversation with my accountant who confused the hell out of me.

So say if your corporation tax was on average £12k every year.  Could you start paying £1k every month from your company into a SIPP and then end up paying no corporation tax?

Edited by montecristo
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5 hours ago, No One said:

Also, I have a ltd co, for contracting, I got a contract recently so I count myself lucky. Can my ltd co pay my pension into a SIPP, and if so what SIPP?

My last job was being self employed through my own Ltd company. I was bunging in plenty money into my sipp through my Ltd  company. The tax advantages are good.... no corporation tax, income tax or NI.

I have my sipp with Hargreaves Lansdown. 

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14 minutes ago, montecristo said:

So say if your corporation tax was on average £12k every year.  Could you start paying £1k every month from your company into a SIPP and then end up paying no corporation tax?

I was paying myself a minimal salary (about £12k) to pay more or less no income tax. I was paying myself a dividend as well (you dont pay any NI on dividends). Anything left over was put into my Sipp.

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5 hours ago, No One said:

Hello

 

As a young man, I never really paid attention to pensions, or savings. Over the years I've bounced between several jobs and companies and never bothered to take pension pots from one place to another.

Now in my 30's I have to start taking this more seriously. First thing I need to do is grab all the small pots and paltry pension bits I've left and bring them into one place.

Only question is where to? Suggestions anyone?

Also, I have a ltd co, for contracting, I got a contract recently so I count myself lucky. Can my ltd co pay my pension into a SIPP, and if so what SIPP?

A few pointers and things to look out for - apologies if you already know the basics and I'm repeating stuff:

For your defined contribution schemes, that's ones where there is no guarantee of value unlike for final salary / defined benefit schemes, I would suggest moving them all to a single robo-advisor. The fees will likely be a lot lower over the long term than the other options and it's fees that have the most impact when you take compounding into consideration. I've used WealthSimple - Canadian but with a UK operation too - and I've very happy with both the ease of use and the investment returns but there are many others to choose from. Make sure you pick one with with a big backer somewhere in the mix though or you may well have the hassle of moving the whole lot again in a few years time.

For defined benefit schemes, if you have any, it's a much harder call and you really should pay for some genuinely independent advice if there's anything more than a few thousand pounds in there. You have to factor in the income that will be generated, index linking, payout of you die before claiming and the chance that the scheme won't go bust before you retire.

It is always better to make payments into your pension direct from a limited company rather than from after-tax personal income as that avoids employers national insurance payments which you can't claim back (unlike some of the income tax).

Watch out for all the difficult to calculate limits on what you can contribute and, once you get to payout time, how much you can withdraw before you get hit with a 25% extra tax charge. The current lifetime withdrawal limit is ~ 1M which is less than you think spread out over, say, 30 years. Some details on all of that here:

https://www.hl.co.uk/pensions/contributions

If you're not a higher rate tax payer, it's worth considering whether you should just stick money into an ISA - same comments about robo-advisers apply for that one - as that, whilst slightly less tax efficient at the moment of contribution, is vastly more flexible down the line and you won't get punished for making good investment decisions either.

 

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6 minutes ago, Great Guy said:

I was paying myself a minimal salary (about £12k) to pay more or less no income tax. I was paying myself a dividend as well (you dont pay any NI on dividends). Anything left over was put into my Sipp.

Did you then put a lump sun (anything left over) just before the end of the financial year or monthly payments?

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OK, lots of good advice for me to mull over a cupa.

I'm going to have to think it through a little bit, as I have to find the best way to put £$£$£ from my limited co which can be quite a bit.

 

The old pension pots really dont amount to much from what I recall. 

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