I have been investigating what I should do regarding my retirement planning (i actually enjoy this for some odd reason… super exciting go me).
I’m 35 and plan to retire around 60 (hahahaha, you have to dream) so what should I do with my monthly savings?? Background is that I have an ISA with some stock primarily focused on long-term dividend shares spread over 20 companies mainly larger ones with ~4% div yield. Options I am considering now are max out a LISA (thanks government for the top up) for the next 4 years until I’m 40 or contribute to a SIPP (currently standard rate taxpayer with small company matched pension) again thanks government for the top up.
Now the question comes LISA is great as there is no tax to pay on “draw down” but with the SIPP there is, minus the tax-free income allowance, and 25% lump sum, also possible to start drawing down SIPP at 55 (57 soon)
Should add that i aim to save about 10 - 12k per year so anything over the 4k LISA allowance would go into a standard ISA.
So what’s the optimal balance? How can i work out what to put where to minimize by tax in 25 years time, understand that this is probably all completely redundant as the tax policy will have changed a million times by the time i retire and we will all be living on Mars.
Any discussion and ideas on what other are doing / not doing would be great