Paying £2880 into pension when retired

Zanderman

booveedoo said:

Malchester said:

I add £2880 each year on 6 April and the tax refund is added almost immediately. My pension is with PensionBee

Being cheeky, is this all that you use PensionBee for? Was thinking about PensionBee for this, and at some stage move my pension into it. Others have recommended Hargreaves Lansdown for this one off "gain"? Personal choice I guess.

I'm sure someone will correct me if I'm wrong but I don't think PensionBee have a facility for holding in cash, whereas HL do.

If so and you use PBee your 2880 will be invested and value will fluctuate until you withdraw it.

If you simply want a straightforward pay-in-2880 and, when tax relief is paid (usually a few weeks wait - so an investment could go down, or up), a straightforward withdraw-£3600 process then a system that allows just cash might be easier.

bluenose1

I know with HL they put in the uplift at set times, dates in link.
https://www.hl.co.uk/__data/assets/pdf_file/0010/124021/sipp_tax_relief.pdf
For my oh we will withdraw date it goes in. Then pay in £2880 again towards end of 22/23 tax year.

quirkydeptless

I officially became a member of the 2880 club Today

trickydicky14

Some help please,

Just paid £2880 into my Vanguard SIPP via debit card and money is now showing on my account, but when I come to invest it says I have no cash available to invest.

Even though the money is showing, does it still take a day or so to clear before I can use it.

cdbe11

Hi, great thread. I'm 52, and a non-earner (but a BR taxpayer - property) keen to take advantage of this. I will have a 1 year window at 59 when I'll pay no tax so am I right in thinking a drawdown arrangement is what I need? Obviously the proceeds after 6-7 years will be more than my tax allowance so can I take 25% (or anything) tax free each in the years from 55-59 to reduce this? And/or - as I'm only just a taxpayer if I have a bad rental year could I take more out to use up my allowance?

Also, does a CGT liability in the years I sell my houses (not much, will be just over the joint annual allowances) affect the tax in any way?

And I know it's lazy but this thread is enormous! Can anyone list the top 2 or 3 providers/schemes I should consider? Low - medium risk, I don't really want to gamble but would like to try to protect my tax relief from inflation.

Thanks.

ian16527

trickydicky14 said:

Some help please,

Just paid £2880 into my Vanguard SIPP via debit card and money is now showing on my account, but when I come to invest it says I have no cash available to invest.

Even though the money is showing, does it still take a day or so to clear before I can use it.

With Vanguard it takes a day for it to become available. Also the tax relief is shown in the total but does not hit the account for 6 - 8 weeks.

Fidelity is the same timescale for tax relief and is paid as said above around the 21st of the month.

booveedoo

Ok. So I put £2880 in, and HMRC tax top up credited. So, I`ve now got £3584.90 to withdraw (lower than £3600 I know but still decent!). Bearing in mind, I`ve not drawn down on any pensions, will this trigger anything? Is it classified as drawdown? Currently, I`m not working and was a basic taxpayer. Over 55. Can I take this move out? 

Dazed_and_C0nfused

Yes but by flexibly accessing (basically anything other than buying an annuity) the taxable element you will be limiting any future contributions to a maximum of £4,000 (gross).

Not an issue for permanent non earners but if you are ever likely to work and would want to contribute more than that then you won't be able to.

Don't forget to check any provider fees, especially if taking the whole lot not too long after contributing.

Malchester

booveedoo said:

Malchester said:

I add £2880 each year on 6 April and the tax refund is added almost immediately. My pension is with PensionBee

Being cheeky, is this all that you use PensionBee for? Was thinking about PensionBee for this, and at some stage move my pension into it. Others have recommended Hargreaves Lansdown for this one off "gain"? Personal choice I guess.

Sorry for the delay in replying. Didn't see the post. Sorry

Yes. I have 3 pensions plus a greater than full state pension. I am taking a local government pension (from age 60). Another DB pension is due along with state pension when I reach 66 (2 years time). The Pension I have with PensionBee is one I had with my final job where I contributed a largeish amount for 5 years with the view to it helping fund me for the 5 or 6 years till all my pensions kick in. It was with the Pensions Trust through my last employer. Pensions Trust provide a very limited range of options so I looked around and chose PensionBee. I withdraw an amount each month (25% tax free 75% taxable) which, along with LGPS is sufficient. I add the £2880 each April and get the £720 added. As a non tax payer at the moment £2880 is the max I can add but it is worth it as, the £720 added by HMRC is free money and more than I would earn in interest or probably investment in a year. I have planned that the pension with PensionBee will be used up by March 2024 and withdraw accordingly.

Dazed_and_C0nfused

As a non tax payer at the moment £2880 is the max I can add

Non taxpayers aren't limited to £2,880 (net).

That's the limit for non earners.