Workplace pension vs SSIP

[boymum36]

I currently pay 12.5% into my workplace pension but I only work 16 hours a week so it's not a lot. I can't increase it as I need the money most weeks. However now and then I will have extra money or save up some money so I was thinking of opening a SSIP to pay adhoc as I can't do this with workplace pension. Does this sound like a good idea or should I put any spare money in S&S ISA?

Hello, totally depends on age , debt etc but pension or isa are the right investment mechanisms to be thinking about. I thoroughly recommend the Meaningful Money podcast to help you work this through. The podcast also wrote a book called Meaningful money which you can get from a library and that is also v useful. Good luck

IT depends on various factors, like how old are you, when do you want to access the money, do you own a property, your tax status. Main options are:

• S&S ISA - put in up to £20k per year, all gains and income tax free, can take out the money at any time
• Lifetime ISA (LISA) - can contribute up to £4k per year, you get a 25% bonus on your contributions from the government. You need to be under 40 to open it, and can only use it to purchase a first home, or access it after the age of 60. (otherwise you lose the 'bonus') - tax free, same as ISA
• SIPP (self invest personal pension), you get tax relief on your contribution, can only access it from the age of 55 (or 57 from 2028), 25% of withdrawals are tax free, pay income tax on the rest.

Those are the basics