Pension and tax relief - dumb question!

[MartynJC (UK)]

Depends on your age and years to retirement and drawing in the pension.

You want less risk and more certainty the closer you are to taking the money.

Leave high risk strategies to younger people.

I’ve decided to keep my Aviva split over various risk factors even though I am already retired. I want my funds to work for me. Saying that I have about 50% in the lower risk bonds / gilts fund as a buffer. The rest are tracker US/UK/consolidated and a punt on high risk commodities fund.

Do need to look at long term >5y investments though.

PLEASE do seek professional advice rather than relying on (random) TZ folks! Maybe some can backup their advice with their credentials? I am just a guy who used to work in the IT department of a large US fund manager.

I couldn’t see the point of a managed fund compared to a tracker fund tbh considering the fees involved and returns - but that is my personal opinion.

[westberks]

another potential benefit with pensions is if you decide to retire prior to the state pension age; you can then take the personal allowance tax free from the pension fund too.

Obviously this only applies to those able or planning to go early and that aren't in receipt of other incomes.

Salary sacrifice helps with reduced NI contributions, also if you fall or fell under the income traps levels for child benefits or have income in the £100k-£125k and lose your personal allowance; larger pension contributions can often circumnavigate these.