Paying £2880 into pension when retired

tigerspill

molerat said:

With HL you can do the questions on line but the application to withdraw is paper in the post.

Start UFPLS application on line, answer questions, illustration and application form arrive in post next working day, fill in application and send off - first one will require ID and bank proofs to be sent - payment made in around 10 days.

I have done all our HL SIPP withdrawals online.  Never had to post them anything - ever.  This is for withdrawing the tax free 25% and taxable sums.

Zanderman

tigerspill said:

molerat said:

With HL you can do the questions on line but the application to withdraw is paper in the post.

Start UFPLS application on line, answer questions, illustration and application form arrive in post next working day, fill in application and send off - first one will require ID and bank proofs to be sent - payment made in around 10 days.

I have done all our HL SIPP withdrawals online.  Never had to post them anything - ever.  This is for withdrawing the tax free 25% and taxable sums.

Mrs Z-man and I have the opposite experience - the same as tigerspill. UFPLS withdrawal applications are done online, or by phone, answer questions, form comes in post, has to be returned by post. First year  requires ID too, not subsequently. But still always by post. Are your withdrawals UFPLS?

booveedoo

saver861 said:

Nationwide8 wrote: »

Sorry if this is an obvious question but if you withdraw say £3550 in a tax year does that count towards your PA ?

I mention only withdraw £3550 in first year so that you leave the account open.

Each year thereafter, you can withdraw £3600 - the £2880 you put in plus the £720 HMRC puts in.

25% is tax free so that will not go towards your PA. The other 75% will - i.e. £2,700.

So, if your PA is £11,000 and your income is less than £8,300 then you will be able to withdraw the £2700 without reaching your PA. However it still does count towards PA so if your income is £8,300 and you withdraw the £2700 from the SIPP you have then used up your full PA for the year.

What if I`ve already taken 25% TR from another pension pot I had. Does the new SIPP opened up have a reset on the 25% as it`s a new pot? Sorry if it`s already been answered, but this is a long thread to get through!

MallyGirl

you get 25% of each (uncrystallised) pension pot

JoeBloggs1234

I am in a fortunate position with a private pension and a full OAP pension of the new type (post 2016).

Currently the total pension amount is 48K for tax year 2025/2026.

With inflation I expect this to rise by 3% per annum so about £1.5K. so:-

2025/2026 - 48K

2026/2027 - 49.5K

2027/2028 - 51K

2028/2029 - 52.5K

So I expect that in the year 2027/2028 I will be into the 40% tax band which will also reduce my PSA to £500.

Combined with the ISA cash limited to 4K means I will be hit with higher taxation on income and savings.

I hope a new government will increase the personal allowances and the ISA cash limit from 4K, however I wondered if I should open a pension SIPP and put in £2880 per year (I am 68, retired and have pension income and savings)?

Would this reduce my overall income levels and keep me in the 20% tax band?

Not sure of this so thought I would ask the experts on MSE.

Failing that I have a charity I support so I could increase the support to keep me in the 20% tax band.

Any thoughts would be appreciated.

Dazed_and_C0nfused

JoeBloggs1234 said:

I am in a fortunate position with a private pension and a full OAP pension of the new type (post 2016).

Currently the total pension amount is 48K for tax year 2025/2026.

With inflation I expect this to rise by 3% per annum so about £1.5K. so:-

2025/2026 - 48K

2026/2027 - 49.5K

2027/2028 - 51K

2028/2029 - 52.5K

So I expect that in the year 2027/2028 I will be into the 40% tax band which will also reduce my PSA to £500.

Combined with the ISA cash limited to 4K means I will be hit with higher taxation on income and savings.

I hope a new government will increase the personal allowances and the ISA cash limit from 4K, however I wondered if I should open a pension SIPP and put in £2880 per year (I am 68, retired and have pension income and savings)?

Would this reduce my overall income levels and keep me in the 20% tax band?

Not sure of this so thought I would ask the experts on MSE.

Failing that I have a charity I support so I could increase the support to keep me in the 20% tax band.

Any thoughts would be appreciated.

Pension contributions to a SIPP wouldn't have any impact at all on your taxable income.

But they would increase your basic rate band by £3,600 (assuming you meant you would add £2,880 net).  Gift Aid donations would have a similar impact.

Have you got a link to the announcement about the Cash ISA limit being dropped to £4k 🤔

JoeBloggs1234

Link to announcements about the Cash ISA limit being dropped to £4K --> no actual official link just various stories in the papers like the WFP articles that then proved to be correct. 

After the TV licence, WFP and the energy bung to everyone being withdrawn I would put nothing past the previous and current governments.

So putting £2,880 net into a SIPP it would increase your 20% tax band from £50,270 to £53,870?

Is that something you identfiy on the self assessment tax form?

QrizB

JoeBloggs1234 said:

Link to announcements about the Cash ISA limit being dropped to £4K --> no actual official link just various stories in the papers like the WFP articles that then proved to be correct.

And the stories in the same papers about TFC being cut, which proved to be wrong? Among other false alarms that have caused so much concern on this forum over the years?

Dazed_and_C0nfused

JoeBloggs1234 said:

Link to announcements about the Cash ISA limit being dropped to £4K --> no actual official link just various stories in the papers like the WFP articles that then proved to be correct. 

After the TV licence, WFP and the energy bung to everyone being withdrawn I would put nothing past the previous and current governments.

So putting £2,880 net into a SIPP it would increase your 20% tax band from £50,270 to £53,870?

Is that something you identfiy on the self assessment tax form?

If you complete the return correctly you would be entering RAS pension contributions in the pension relief section.

And they would then be automatically factored into the tax calculation (by extending the basic rate band).

zagfles

Dazed_and_C0nfused said:

JoeBloggs1234 said:

I am in a fortunate position with a private pension and a full OAP pension of the new type (post 2016).

Currently the total pension amount is 48K for tax year 2025/2026.

With inflation I expect this to rise by 3% per annum so about £1.5K. so:-

2025/2026 - 48K

2026/2027 - 49.5K

2027/2028 - 51K

2028/2029 - 52.5K

So I expect that in the year 2027/2028 I will be into the 40% tax band which will also reduce my PSA to £500.

Combined with the ISA cash limited to 4K means I will be hit with higher taxation on income and savings.

I hope a new government will increase the personal allowances and the ISA cash limit from 4K, however I wondered if I should open a pension SIPP and put in £2880 per year (I am 68, retired and have pension income and savings)?

Would this reduce my overall income levels and keep me in the 20% tax band?

Not sure of this so thought I would ask the experts on MSE.

Failing that I have a charity I support so I could increase the support to keep me in the 20% tax band.

Any thoughts would be appreciated.

Pension contributions to a SIPP wouldn't have any impact at all on your taxable income.

But they would increase your basic rate band by £3,600 (assuming you meant you would add £2,880 net).  Gift Aid donations would have a similar impact.

Have you got a link to the announcement about the Cash ISA limit being dropped to £4k 🤔

Speculation and rumour as usual...

Cash Isas: pressure grows against rumoured move to £4,000 allowance | Isas | The Guardian

Cash ISA limit could be cut to £4,000 as Rachel Reeves ponders overhaul | The Independent