Hargreaves Lansdown SIPP

gnash101

My OH will retire in a couple of years with a FS pension well below annual personal allowance. Got a bit of cash earning a pittance in cash ISA.
By what I have read on this thread it would be better to syphon that into HL sipp prior to her retirement and even if it is left uninvested in cash, the tax relief must make it far more lucrative than being left in the cash ISA.
Could then drawdown couple thousand a year to supplement FS at retirement tax free as still be below allowance.
Would this be a wise move.

AlanP_2

gnash101 wrote: »

My OH will retire in a couple of years with a FS pension well below annual personal allowance. Got a bit of cash earning a pittance in cash ISA.
By what I have read on this thread it would be better to syphon that into HL sipp prior to her retirement and even if it is left uninvested in cash, the tax relief must make it far more lucrative than being left in the cash ISA.
Could then drawdown couple thousand a year to supplement FS at retirement tax free as still be below allowance.
Would this be a wise move.

If it is "spare" cash then makes sense but remember can't be accessed until 55 at least (which doesn't sound from your comments as if it will be a problem).

Can continue to add to SIPP even when no earned income in retirement up to £3600 Gross / £2880 Nett per annum - so £720 a year "free" from HMRC if income below Annual Allowance as discussed above.