I’m considering setting up an additional DIY SIPP pension. Do you see an issues with this?

I’m 57 and now not working but living off savings while I renovate my house. I will receive a reasonable final salary pension when I’m 60. I’m considering setting up an additional diy SIPP pension and paying in £2880 per year to benefit from the gov top-up of £720 to £3600. Apart from the chance of the funds invested in going down, I can’t see a downside to this investment - can anyone else? Thanks

Hi Mike

Thanks for your question. I agree, there is no downside other than potential investment risk, although the tax relief does cushion you a bit so hopefully you loose the taxman's money and not your own.

However, unless you are going to self select direct share investments, you do not need a SIPP. You'll just be paying higher charges for functionality that you're not using. A simple off the shelf pension with Royal London, Aviva or Aegon in a multi asset fund should be fine.

If you need any further information, please contact me or another adviser on the website.

Rachel Efetha