Is my pension strategy sound?

ukjoel

Funnily enough as I went to look on the company intranet for an HR contact I spotted a news update confirming that they are increasing the flex windows for pension.

A couple of emails later and they have confirmed I can set the basic sal sac and the bonus sal sac independently which makes life a LOT easier next year and removes the level of 40% guesswork.

Am one very happy bunny.

FatherAbraham

ukjoel wrote: »

At 50 I planned on putting more into ISA's once I knew the pension was at a comfortable level and would get close to max limit.

I wondered if there were any tricks I might be missing, or opportunities I should be looking at?.

Well, the problem with that is that you'd be locking in the 40% tax paid on the ISA contribs (of course, the same is true if you save outside the ISA, only even worse because investment returns get taxed).

If you can get your residual income down into the 20% band, then ISA contribs make more sense. But maybe you can't.

It might make sense to look at a more moderate rate of saving in to the pension fund, with a view to doing it for longer, with better tax avoidance, rather than stuffing the pension fund really full quickly, and then having no income-tax-mitigation avenues left open.

Warmest regards,
FA