Can I do this?

bigfreddiel

I'm 64, working part time, maxed out my isa and have £80k in ns&i investment bonds.

I could open a sipp and anything I paid in would be boosted by 20%.

Would that be a reasonable strategy?

Cheers

fj

kidmugsy

It would be especially attractive if you eventually take the money out tax-free. What income do you expect in retirement?

When is your 65th birthday? Deferring your State Pension might be profitable too.

FatherAbraham

bigfreddiel wrote: »

I could open a sipp and anything I paid in would be boosted by 20%.

Well, more precisely, funds in a pension arrangement are tax-deferred, so liable to taxation when withdrawn. 25% of withdrawal is tax free; the rest treated as taxable income when taken.

Warmest regards,
FA

bigfreddiel

kidmugsy wrote: »

It would be especially attractive if you eventually take the money out tax-free. What income do you expect in retirement?

When is your 65th birthday? Deferring your State Pension might be profitable too.

July 16, so deferring is only worth about 5% pay unlike 10% prior to April 16

Cheers fj