More of a question about tax as I have been wrestling with the pros and cons of AVCs to my work pension vs investing myself in an ISA (a la freetrade). Not something thing I need to know for a little while but in the next 6 months or so I should have a bit of spare cash each month and have been trying to figure out the variables I need to consider.
- 30 years of contributions left
- higher tax band
- maxed out employer contributions to pension
- highly likely to hit maximum lifetime allowance with just the work pension
- work pension fund options are fairly safe set of L&G type funds with a few that are majority globally diversified stocks and shares
I think the crux of it is understanding if, once you know your going to be over your lifetime allowance do the benefits of AVCs become redundant as your going to get taxed as much as you would in your pay when you retire, and do you think the growth you would get outside the work fund will make up for the tax and fund charges.
Is there more to it than this or am I trying to over complicate it?
Asking for a friend