Pensions Planning: The NUMBER

kempiejon

My early mistrust of government meddling in pensions caused me to direct the majority of my ER planning to ISAs and unsheltered. Tax was more begin to dividend income and capital gains in those days. Which, luckily for now, means much of my investment income is not taxed - I have moved most to ISAs now though still try and use the cap gains and dividend allowances.

ISAs fill the gap before 55 and before SP age I can extract a fair amount from the SIPP without tax and reinvest in ISAs any surplus to generate more tax free income. If I need extra funds in that period of course I can opt to take more from the taxable accounts and pay income tax - or not I can draw extra from ISAs. From 67 I can no long opt out of tax 'cept by deferring SP, then I'll extract up to the basic rate, well that's th broad current plan. Fiscal drag is probably only bothering ~30% of my retirement income provision.