The best way is to follow the tax-free hierarchy:
1) Employer pension (free matching!),
2) LISA (if under 40),
3) SIPP (tax relief),
4) ISA (flexible)
Anything after that can utilise other tax allowances like dividends and capital gains allowances in your taxed GIA.
Tip: Use our flowchart to decide.
👉 Look at Week 8 for more on the decision heirarchy.
I’m 52 and. teacher. Is it sensible to get a SIPP instead of an S&S ISA as I will retire at 60.
Hey Philip, if you are a higher rate tax payer then SIPPs are AMAZING. You will have to check what is already “going into” your teachers pension to make sure you don’t go over the 60k a year threshold but in general SIPPs are so much more tax efficient than ISAs and you can get to it as soon as you retire! Sending happiness. Alan
Can I invest in a SIPP going backwards ie for last year?
Hey Nikki, the gov site has the details. https://www.moneyhelper.org.uk/en/pensions-and-retirement/pensions-basics/self-invested-personal-pensions?source=mas# in general if you had one open then yes but there are rules around it… Alan