Is it worth investing in an SIPP pension or not?

[DonutEnvy]

I am about to go back to work self employed part time after being off for maternity.
I haven’t put anything into my pension since my employed job years ago. I am 28 years old.
I was thinking when I go back to work, is it worth putting money in a SIPP every month or am I better off investing generally in the stock market. I have already invested abit in Vanguard.

I just don’t want to regret not putting it away later?

If you invest in a pension you'll get the 20% tax relief added onto the contribution by the government. So to get £100, you'll pay £80. Free money.

Also, if you open a Lifetime ISA, you can contribute up to £4000 per tax year and the government will contribute up to £1000. You can use the proceeds of that to buy a house (within certain parameters) or for retirement.

Before these two, make sure you have an emergency fund in accessible cash in case the fridge breaks or the car needs new tyres.

As you're self employed, the tax relief on the pe sion contribution won't be automatic - you'll need to put it on your self assessment form and the tax will be adjusted that way..

Not necessarily. You can still pay "net" into a personal pension scheme as self employed, where HMRC "top up" the tax automatically. It would then only be the higher rate tax relief (if applicable) you'd claim on the self assessment tax return.

Thanks. That was an afterthought I should have left in my head. 🙂