Another SIPP Question

King_Weasel

I'm retired and in my 60s, so I assume SIPPs are not for me.

Am I right?

dunstonh

No.

Pensions are a tax wrapper. Forget they are called pension for the moment. They are an investment tax wrapper that has the same investment options as ISAs and unwrapped investments. So, if the tax wrapper suits your needs and the maturity process suits your needs then it should be considered.

The changes made in 2001 on the pension tax wrapper have actually made pensions very popular with those that have already retired. The 2011 changes have further improved it.

So, dont think of it as pension but think of it as just another tax wrapper like ISA, investment bond (onshore/offshore), unwrapped etc.

atush

If you are still earning enough to save elsewhere now you are retired, you can use a SIPP. Contribute, get tax releif and then take 25% lump sum and use the rest for income.

It will really depend more on your tax situation as ISA income isn't taxable but the income (apart from the TFLump sum) is.

King_Weasel

As my wife is a non-taxpayer we should be considering a SIPP in her name, it seems. I'm talking of switching existing investments more than new saving.

Thanks for the replies.

dunstonh

The payment of £3600 a year gross (£2880 net) into pensions for non-working spouses or spouses with virtually no provision of their own is very popular. Retirement provision should be balanced between you. At state pension age you get £10k a year earnings tax free. A husband with £20k income and a spouse with none will be £2000 a year more tax than a couple with £10k income each. All because the direct debit (or cheque) was put in one persons name and not split.