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Basic rate taxpayer LTA new strategy?
Teaandscones
Posts: 149 Forumite
Summary of my position
Age 52 single no debt, good health (BP 100/60), family history of longevity and outliving their money.
2 deferred DB pensIons 1st £14k p.a. CPI indexed, 2nd £4,500 p.a. indexed by RPI. Also £35k lump sum.
Existing employer pension LGPS £1k p.a. and increases £800 per year of employment.
SIPP £230k HL in high risk shares IT's etc. This has done very well due to luck, and piling in during 2008 & 2009, (Share choice inc BT, Johnson Matthey, Dunhelm, Hargreaves Landsdown, i'll forget about my safe choice of Tesco).
Current SIPP contributions £1,400 per month on top of my LGPS pension.
I am and always have been a basic rate taxpayer but now I have for the first time the LTA on my agenda having never considered it before as relevant to me.
I enjoy my current job and expect to carry on working until age 57 at the earliest and 60 at the latest, but given the cutbacks in local government who knows. My plan has been to have a high risk SIPP to be taken as drawdown, on the grounds that my DB pensions will count effectively as a guaranteed income to allow this.
However, given the changes in the LTA should I change my plan of piling into pensions but look at other vehicles instead?
Age 52 single no debt, good health (BP 100/60), family history of longevity and outliving their money.
2 deferred DB pensIons 1st £14k p.a. CPI indexed, 2nd £4,500 p.a. indexed by RPI. Also £35k lump sum.
Existing employer pension LGPS £1k p.a. and increases £800 per year of employment.
SIPP £230k HL in high risk shares IT's etc. This has done very well due to luck, and piling in during 2008 & 2009, (Share choice inc BT, Johnson Matthey, Dunhelm, Hargreaves Landsdown, i'll forget about my safe choice of Tesco).
Current SIPP contributions £1,400 per month on top of my LGPS pension.
I am and always have been a basic rate taxpayer but now I have for the first time the LTA on my agenda having never considered it before as relevant to me.
I enjoy my current job and expect to carry on working until age 57 at the earliest and 60 at the latest, but given the cutbacks in local government who knows. My plan has been to have a high risk SIPP to be taken as drawdown, on the grounds that my DB pensions will count effectively as a guaranteed income to allow this.
However, given the changes in the LTA should I change my plan of piling into pensions but look at other vehicles instead?
0
Comments
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On those numbers if you are paying for the SIPP contributions (assumed to be a gross figure) from the salary that earns the LGPS pension then you are actually spending less than £15k a year. You already have the pension funds to supply way in excess of that so why not retire now?0
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See my comment on this thread
https://forums.moneysavingexpert.com/discussion/5203122
And stop making the problem worse by contributing to your SIPP!Free the dunston one next time too.0 -
On those numbers if you are paying for the SIPP contributions (assumed to be a gross figure) from the salary that earns the LGPS pension then you are actually spending less than £15k a year. You already have the pension funds to supply way in excess of that so why not retire now?
Yep about right. I could retire tomorrow but think that 52 is a bit young to do so. I still enjoy my job, and being able to walk away if I wanted to makes it even more so.0 -
I'm not convinced that LTA is likely to be a problem for you.
See the extended conversation at
http://forums.moneysavingexpert.com/....php?t=5203122Free the dunston one next time too.0
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