Pension Payments question

starfish10

Is there limits to what can be paid into either a stakeholder or SIPP if you have already bought an annuity with a previous pension?

atush

No, you still have up to your income or 40K whichever is lower.

I am suuming this annuity isn't new?

jamesd

Income from standard annuities doesn't cause a reduction in your money purchase annual allowance so that remains at the lower of your annual income or £40k a tax year.* Or £3600 if you don't have earned income.

If you're anywhere close to your state pension age and either haven't bought it yet or are within a few weeks of buying it, best to say so so we can tell you about deferring the state pension, which is likely to pay more for the same amount of money spent.

*ignoring pension input period issues.

kangoora

Just be a little careful, several types of income do not count as earned income so you can't contribute those to a pension.

Major examples being, pension payments/income and rental (BTL) income.

starfish10

Thanks for all your replies, The annuity was sorted about 5 years ago and my husband is still self employed, so we figured as we are getting not much on our savings, that saving into a pension (stakeholder) would be a good idea. This way he would get tax relief. he is 56 so a while to go until state pension.