£2880>£3600

eric100

Thanks all, that clarifies things

Daydreamers

I was wondering if this would be good for me to do? I'm 52 and don't work at the moment due to ill health.I don't pay any tax, I don't receive any benefit and have transferred some tax allowance to my husband. I have a small pension pot of about 10000 and was thinking of just taking it at 55. I don't make contributions although it is allowed. If I paid 2800 in from savings each year the uplift would be far better than interest? Is there anything else I should be aware of? Thanks.

jamesd

Just that restriction of future pension contributions to no more than 10k a year if you take any of the 75% taxable and lack of any access until you reach 55. You can pay in 2880 rather than 2800 if you want. if the money is available it seems like an excellent idea given your age and tax situation, since you can make £720 a year doing it.

I suggest not using Virgin given the time period unless you do deliberately want the investment exposure to the UK stock market. Hargreaves Lansdown allows just holding cash, so will a range of others.

foreversummer

Can I still put £2880 in if I have been enrolled into a Nest pension? I only work part-time and my Nest contribution is a mere £2.50 a month. I do not pay tax (earn around 9k a year PAYE) and receive circa £2000 dividends from my husband's business (not taxable). I am 53 and realise I cannot take anything out until I am 55.

So grateful for this post and thank you to those who have taken the time to explain.

Foreversummer

xylophone

If you have no relevant earnings, you may invest up to a net £2880 into a RAS pension and the provider will claim the £720 relief.

In your case you have relevant earnings and you may invest up to your total net relevant earnings into a pension scheme (s) (subject to allowances).

You deduct what you have already contributed to the employer's scheme and pay up to the balance into your personal pension/SIPP.

http://www.taxation.co.uk/Articles/2015/05/05/333016/money-go-round

xylophone

And see https://www.gov.uk/tax-on-your-private-pension/overview

re annual allowance/lifetime allowance etc.

Re relevant earnings

http://www.rossmartin.co.uk/private-client-a-estate-planning/income-losses-claims-reliefs/1034-relevant-earnings-for-pensions-purposes

jerrysimon

My wife has now stopped her part time job having earned £3259 so far this year. She is doing some other paid work that will take her to £5179 by end of March. This new role wont have any pension contribution, but to date she has contributed £189 to her pension. Do I subtract that figure from total money earned to get the number for the max I can put in her SIPP or do I also have to subtract her Employer contributions to her pension ?

Regards

Jerry

zagfles

jerrysimon wrote: »

My wife has now stopped her part time job having earned £3259 so far this year. She is doing some other paid work that will take her to £5179 by end of March. This new role wont have any pension contribution, but to date she has contributed £189 to her pension. Do I subtract that figure from total money earned to get the number for the max I can put in her SIPP or do I also have to subtract her Employer contributions to her pension ?

Regards

Jerry

Just hers (plus tax relief if it's a RAS scheme where the scheme claims the tax relief). Not the employers.

The employer conts count for the annual allowance but at £40k you won't need to worry about that.

foreversummer

So, can I run this one past you all please. Bear with me.

Hubby runs a limited company taking a salary circa £10000 topped up with a small amount of dividends.

He has an old Allied Dunbar private pension which has approx £19500 in it and has not contributed into it or any other pension for years. The transfer value of this is £15000 so he's just left it where it is. He is 58 so could take the whole amount I believe (25% tax free the rest would be taxed at 20%). This would still be cheaper than transferring it. It is I believe an inflexible product that will not allow drawdown nor will it allow the lump sum to be taken and the rest remain invested.

We could then invest in two new pensions, one for him and one for me, as long as we don't put more than £7500 each in in the first year to get round the recycling rules. We would then benefit from tax relief to bump up the value and offset our losses.

Does this seem like a viable plan? I don't want to break any rules.

Foreversummer

Mrs_Mum99

I have a Cavendish Online Fundsupermarket Pension into which I have paid 2 lots of £2880. I was hoping to be able to take the money out but apparently I am unable to. Can anyone tell me if I can reregister this with someone else so that I can take it out or what other options there might be? When I took it out I thought that it would be a few years before I needed access to it.
Thanks for any help.