Is it worth me starting a SIPP?

[SulkingInTheCatio]

I have a previous nhs pension which is currently worth about 5k a year and am still in the teaching pension which has a current value of 10k a year Think my nhs one can be taken without detriment at 65yo and the teachers one at 67yo.

I also have a previous final salary scheme with a current value of 3k a year which can be taken without detriment at 55yo.

id like to retire at 60yo but am worried about decimating my annual income by going too early. If I stay in teaching my teachers pension would be worth around 20k a year (if I took it at 67yo. So 28k a year but reduced for taking it early. Then state pension on top.

so if I paid into a sipp for the next ten years could it help bridge a gap so maybe I don’t have to claim my other pensions quite as early? I’m not expecting to make enough money in ten years to last 7 years but maybe 2 or 3 could be good?

I could probably put around £100 a month in it for the next year. But in a years time I could increase this to £300 possibly £400 a month.

or should I just put the money in a cash isa?

someone at work reckoned they started a sipp two years ago and that it’s been life changing and will mean they can retire early

Ive been looking at providers and Aviva for example talk about £5 feet for buying/selling. But not sure I can cope with being hands on. I’d rather have a managed fund.

Is 58 too late ?

Have you looked at AVCs alongside teachers pension?

Yes. And a colleague told me she did this and then after watching Rebel finance did the sums and realised she’d have to live to 94 to get her extra contributions back So that’s put me off.

plus I want something for prior to my normal pension age

I don’t think so because you’d get the 20% added to anything you put in. Dh is 60 and I’m trying to convince him to do it.

I think she needs to do her sums again. AVCs are a defined contribution pension pot, so are largely similar to a SIPP. There are some different rules, depending on the scheme - e.g. some require you to access the AVCs at the same time as your DB pension. But there are also some benefits - tax relief at source, etc - this is especially useful if you’re getting higher rate tax relief, as you get it automatically rather than have to claim it back. You need to look into the one actually available to you.

I have a SIP with trading 212. I like to be able to manage my own funds because I'm a bit of a control freak. Last year my fund grew by over 22 percent because of good investments. It depends on your attitude to risk but I also have a Teachers Pension plus another pension pot I got after my divorce from 1st DH. I opened my SIPP about 8 years ago and thanks to investing in oil and AI it has grown well. These investments are volatile and I can only make them because I have other pensions, plus I'll get the full state pension in 2 years time.

@ElizabethG81 The terminology is counterintuitive but relief at source isn't what you mean. You mean net pay.

No. You can contribute up to age 75 and that includes those not even working.