SIPP Questions
Posted: May 22nd, 2021, 2:50 pm
For the last seven years I've been trying to put our family finances back into shape. It's been a struggle. Such is the road that I fear many travel. We're not out of the woods yet. But there's more than a glimmer of candlelight.
My good lady has been in her job all her working life. There's little chance she will not be able to see her working life out in the same position. She will get a pension from her employer (the local authority) which is about 14 years away. I'm a little light on my private pension as I've had a few long terms issues with my health.
However, the family finances are slightly more robust today than they were seven years ago.
I have been working freelance for three months now. My income isn't where it could be but that should sort itself out with time.
However, based on todays incomes and outgoings we're well above water. Our joint net income puts us in a very fortunate position. And that helps us to sleep nights
Of my income I am committed to have to spend £1,000 per month. Of that commitment £600/month is being diverted into savings (£200 for Xmas and £400 for my daughter) The other £400 is for bills. I need to work 3 days a month to earn £1K. In addition there is always more that £15K in my current account. I feel we can cope with "economic" shock if I didn't work for a short period of time. And we've been there more times than we would have preferred.
I've spoken about this before. I want to divert some money into my pension. And that is the final part of my plans. We do have pensions but not enough and some of that will go on paying the capital on the mortgage off.
I'm 59. I'm self employed. I will be 72 when my good lady retires. I don't think I could retire before her and stay at home washing windows, watching cricket and teaching the parrot to swear. I may step back to a shorter week in five years time. My body will tell me when I need to consider that.
I think I need a SIPP. I believe this may present a good way for me to progress. It think it will also allow some flexible way of improving available cash if we can't deal with an "economic shock" with our current cash.
I've estimated I can put about £32K into this pa. That should increase to £40K if I can sell my freelance skills at a slightly better rate.
I'm considering AJ Bell or Aberdeen Standard for the SIPP. I'd welcome thoughts about any other providers please. Also I'd like to know if the provider applies for the tax relief on the investment please and if so when that is put in the SIPP? Or do I need to claim that back through HMRC?
Thank you in advance
AiY
My good lady has been in her job all her working life. There's little chance she will not be able to see her working life out in the same position. She will get a pension from her employer (the local authority) which is about 14 years away. I'm a little light on my private pension as I've had a few long terms issues with my health.
However, the family finances are slightly more robust today than they were seven years ago.
I have been working freelance for three months now. My income isn't where it could be but that should sort itself out with time.
However, based on todays incomes and outgoings we're well above water. Our joint net income puts us in a very fortunate position. And that helps us to sleep nights
Of my income I am committed to have to spend £1,000 per month. Of that commitment £600/month is being diverted into savings (£200 for Xmas and £400 for my daughter) The other £400 is for bills. I need to work 3 days a month to earn £1K. In addition there is always more that £15K in my current account. I feel we can cope with "economic" shock if I didn't work for a short period of time. And we've been there more times than we would have preferred.
I've spoken about this before. I want to divert some money into my pension. And that is the final part of my plans. We do have pensions but not enough and some of that will go on paying the capital on the mortgage off.
I'm 59. I'm self employed. I will be 72 when my good lady retires. I don't think I could retire before her and stay at home washing windows, watching cricket and teaching the parrot to swear. I may step back to a shorter week in five years time. My body will tell me when I need to consider that.
I think I need a SIPP. I believe this may present a good way for me to progress. It think it will also allow some flexible way of improving available cash if we can't deal with an "economic shock" with our current cash.
I've estimated I can put about £32K into this pa. That should increase to £40K if I can sell my freelance skills at a slightly better rate.
I'm considering AJ Bell or Aberdeen Standard for the SIPP. I'd welcome thoughts about any other providers please. Also I'd like to know if the provider applies for the tax relief on the investment please and if so when that is put in the SIPP? Or do I need to claim that back through HMRC?
Thank you in advance
AiY