Paying £2880 into pension when retired

clairbear_3

Hi, I have 3 private pensions I intend to start taking £1K/month from #1 in October I will not be employed this year can I add the £2880/year to #3(small most recent work pension) My husband also not working can he add £2880/year to my pension?

Both receive the 20% tax?

MallyGirl

you can add to yours but you are limited to £3600 going in (gross) not per source. He could contribute the same amount to his own pension.

gordon_k

OK, just found out about this £2880 pension thing today, and it looks like I fall into the prime demographic - income a few thousand under the tax allowance, but now able to withdraw funds from a SIPP…

I don't have a personal pension atm, no experience of them, so I'd need to set one up just for this.

I notice a number of people on here seem to use HL - wondering if they are particularly suitable for this, or will any SIPP provider basically do - AJ Bell, PensionBee etc ?

Essentially I just don't want to open the wrong kind of SIPP, or something that will hit me with a huge charge for withdrawals etc, because I am complete pensions noob… 😂

MallyGirl

if you are doing this just for the £2880 then HL don't charge fees if you leave it in cash and they pay interest too.

kempiejon

Careful of the money purchase annual allowance MPAA. A lump sum as a small pot claim can protect from that.

Shadyocuk

https://forums.moneysavingexpert.com/discussion/comment/81984140#Comment_81984140

what forms your other income that is just below the tax allowance ??

gordon_k

https://forums.moneysavingexpert.com/discussion/comment/81984273#Comment_81984273

A fair bit of it is interest on savings. I also run a sole-trader business, but at the moment most of the profits from that tend to get re-invested in the business, so I'm not drawing that much for myself.

gordon_k

https://forums.moneysavingexpert.com/discussion/comment/81984253#Comment_81984253

Well I had understood that I could put £2880 per annum into a pension and get £720 in tax relief no matter how low my earnings were? (I have no other pension provision except state pension). I could well be misunderstanding tho - this stuff is very new to me…

guli

https://forums.moneysavingexpert.com/discussion/comment/81984305#Comment_81984305

you can, but they (as all pension is is just deferred tax) will be subject to income tax.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/comment/81984296#Comment_81984296

Drawings aren't relevant for pension contribution purposes.

Appreciate it is very early in the tax year but how much do you think your self employment profit might be this tax year