Paying £2880 into pension when retired

bowlhead99

SeeMe wrote: »

Ok thanks,
Also would the savings tax come into play on the balance for me, is it £5000?

No, as a drawdown from a pension is not savings interest, it's pension income which is taxed like employment income or profits from self-employed business etc.

SeeMe

bowlhead99 wrote: »

No, as a drawdown from a pension is not savings interest, it's pension income which is taxed like employment income or profits from self-employed business etc.

Ok thanks, i understand.

PT18

Have I got this correct? I opened a sipp with HL end of 2015 tax year for the wife who is now retired with just the state pension as income. I invested the max 2880 then did the same begining of tax year 2016 the balance is now7200 including the tax mans contribution If I now do the same this year 2017 giving a balance of 10800 can she draw as much as she wishes upto her tax free allowance (including her state pension) without paying any tax on it ?

missile

She can withdraw 25% as a lump sum tax free i.e. £2,700. This does not count toward her personal allowance.
In addition she can withdraw as much as she wishes as drawdown. This would be added to her state pension her state pension to calculate her taxable income.

Lincoln_Imp

So just to clarify ..
My wife is currently working earning £12000 per year so under her name she can put in a max of £12000 per year and get tax relief of 20% added

I am about to start taking income drawdown from my DB pension and will not be working (maybe part time at some point) so i am i right in thinking i will not be able to open a sipp ?

We are both nearly 56 so would look at putting into until at least 65

missile

Lincoln_Imp wrote: »

So just to clarify ..
I am about to start taking income drawdown from my DB pension and will not be working (maybe part time at some point) so i am i right in thinking i will not be able to open a sipp ?

You can open a SIPP.

Lincoln_Imp

missile wrote: »

You can open a SIPP.

Can i really ..Thought it was classed as pension recycling ?
Anyway might have no need (Or enough money) if we can put 12k into my wife`s

Dazed_and_confused

Lincoln Imp
So just to clarify ..
My wife is currently working earning £12000 per year so under her name she can put in a max of £12000 per year and get tax relief of 20% added

If earning £12000 why do you think she can add £15000 into her sipp?

And the £12000 figure isn't the only consideration, it gets complicated if she has a pension scheme with the employment paying the £12000 - potentially this reduces the amount which can be contributed to less than £12000

Lincoln_Imp

Dazed_and_confused wrote: »

Lincoln Imp
So just to clarify ..
My wife is currently working earning £12000 per year so under her name she can put in a max of £12000 per year and get tax relief of 20% added

If earning £12000 why do you think she can add £15000 into her sipp?

And the £12000 figure isn't the only consideration, it gets complicated if she has a pension scheme with the employment paying the £12000 - potentially this reduces the amount which can be contributed to less than £12000

Thanks for reply

So it`s a max of 12000 after 20% added ie 10000 ?

No works pension scheme for my wife at the minute as was only working part time but now full time so will be joining soon

xylophone

You pay the net figure into a "relief at source" scheme - the scheme claims the tax relief.

She needs to take account of contributions made into other pension schemes.

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

http://www.scottishwidows.co.uk/Extranet/Literature/Doc/FP0491