Options

Kesi

Thoughts and Advise please- I need a plan. OH reaches spa 2016. I am earning £17k yr with personal pension which is ss and only containing £8.5K. Plus stakeholder £10.5K and another stakeholder with Pru £47k . I hope to retire early at oh spa 2016 and will be 62. My spa is 66 so approx. £30k of taxable allowance to use up in those years. I would be able to invest some of two Isa's which mature 2015 £14k and 2016 £19k into the Pru if this is allowable under recycling rules thus increasing this pension up to £80k then tfc and remainder into dd. Then drawing the pp and £10.5 k stakeholder from age 62-66 -is this allowable?. Would I need an IFA to set this up. We have other Isa's plus large uk house and property abroad to downsize as required.

xylophone

OH reaches spa 2016

When in 2016?

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

https://www.gov.uk/new-state-pension/overview

See also
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/301563/Pensions_fact_sheet_v8.pdf

http://www.hmrc.gov.uk/incometax/relief-pension.htm

Your_Hero

Kesi wrote: »

Thoughts and Advise please- I need a plan. OH reaches spa 2016. I am earning £17k yr with personal pension which is ss and only containing £8.5K. Plus stakeholder £10.5K and another stakeholder with Pru £47k . I hope to retire early at oh spa 2016 and will be 62. My spa is 66 so approx. £30k of taxable allowance to use up in those years. I would be able to invest some of two Isa's which mature 2015 £14k and 2016 £19k into the Pru if this is allowable under recycling rules thus increasing this pension up to £80k then tfc and remainder into dd. Then drawing the pp and £10.5 k stakeholder from age 62-66 -is this allowable?. Would I need an IFA to set this up. We have other Isa's plus large uk house and property abroad to downsize as required.

It's quite difficult to follow with no paragraphs and little punctuation.

So far I've gathered you want to invest your ISAs (maturing 2015 and 2016) into your stakeholder pension (SHP) with the Pru. This is fine assuming you have enough relevant income or carry forward for the years you pay in (appears to be ok from what you said).

It is unlikely drawdown will be allowed on your stakeholder plan because it was designed with basic planning needs in mind only and drawdown was not part of the offering (due to limits on charges etc.).

Even with the potential UFPLS method of withdrawal, providers can choose not to offer this, so you will have to wait and see. The worst case scenario would be you need to transfer the pension to another provider who can facilitate drawdown.

Kesi

Thank you to both. It's is not so much the state pension that I am trying to sort out but what to do with my two stakeholders and pp. What options do I have and how much can I pay back in net while I am still working?.
I forgot to mention that I have a small lgps starting this year at age 60. Only £4.7k lump and £1,500 yr - would this make any difference to 2015 contributions?
If I earn £17k a year and personal pension contribution gross are £1800year can I pay in £12k net in that year and also can I use previous years unused contributions based on pay?
It appears that to transfer all into drawdown now I would have to take the tfc (crystallise) which I presume would restrict me building the pot back up. Sorry if I am not making myself clear.

xylophone

http://www.hl.co.uk/pensions/sipp/how-much-can-i-invest
might be worth a read.

http://www.hmrc.gov.uk/pensionschemes/tax-basics.htm