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Investing in my wife's pension?
chucknorris
Posts: 10,795 Forumite
Can anyone fault my logic here:
I would retire in about 4 years aged 60 but I want to carry on investing in my SIPP at the rate of £28k (topping up from my DB pension up to the £40k max pension tax relief cap).
My wife however doesn't invest that much in her pension (she is also a 40% tax payer), she is 44 so could access her pension in 11 years. I was thinking of paying into her pension up to the £40k (£50k this year) with the idea of her accessing it aged 55, so I could retire at 60 more or less in the same position as if I had worked on to state pension age. I've only just thought of this so quite possibly I have overlooked something (apart from the risk of splitting up and it is in her name and future rule changes).
EDIT: what (if any) restrictions would it impose upon my wife's other pensions, if she accessed a sip aged 55?
I would retire in about 4 years aged 60 but I want to carry on investing in my SIPP at the rate of £28k (topping up from my DB pension up to the £40k max pension tax relief cap).
My wife however doesn't invest that much in her pension (she is also a 40% tax payer), she is 44 so could access her pension in 11 years. I was thinking of paying into her pension up to the £40k (£50k this year) with the idea of her accessing it aged 55, so I could retire at 60 more or less in the same position as if I had worked on to state pension age. I've only just thought of this so quite possibly I have overlooked something (apart from the risk of splitting up and it is in her name and future rule changes).
EDIT: what (if any) restrictions would it impose upon my wife's other pensions, if she accessed a sip aged 55?
Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
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This appears to be the plan of a number of people on here so do it this financial year.0
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