I am unsure whether to invest in a stocks and shares ISA or top up my SPPA pension

19 December 2022

Question by Kelly

I am unsure whether to invest in a stocks and shares ISA or top up my SPPA pension. I do not need access to this before retirement age. I am 51 years.


Answered by Samantha Secomb

Hi Kelly,

Good question.
I would need more information to be able to reply fully which you may not want to share. Firstly, it would depend which SPPA scheme you are in and will the top up be via AVCs, what do the AVCs in your scheme, ie buy back years. You might be better investing in a SIPP as this has tax benefits on money paid in and more flexibility options when you need to drawn the money at retirement, also potential IHT benefits. Obviously, you need to make sure you don't exceed your maximum tax relievable pension contribution - so this would need to be calculated.

If you would like a more personal chat, let me know.

Regards
Sam

Answered by

Samantha Secomb

Chartered Financial Planner, FPFS

On a mission to make unbiased financial advice relevant and accessible to women.