Do i need a SIPP..?

C_Mababejive

I have been musing over this for a long time now,,on and off..

I am lucky enough to have a 2/3rds FS/DB scheme and have so far paid about 31 years worth of contributions. If i reach retirement age i will retire on a pension that will exceed the personal tax allowance assuming everything stays pretty much as it is now.

I have no dependants.

It seems to me that part of my strategy should involve tax planning i.e obtaining tax relief's and sheltering money from tax.

I know that money in a sipp attracts tax relief,,im basic rate, and also that i can take a 25% tax free lump sum but the rest is subject to income tax.

I am wondering whether to start a SIPP to run alongside my DB pension,,simply for reliefs and tax planning..??

philwal_2

You would not need a sipp to benefit from tax relief on your contributions a sipp would be one of a few options for you dependant on what you were planning to invest in within your pension.

jamesd

A personal pension of some sort is a useful tool for bridging the years between retiring and reaching the normal retirement age of the defined benefit pension. Also potentially for topping your income up to the final level of work pension plus state pension.