Paying £2880 into pension when retired

Sun-Is-Fun

Lily1 wrote: »

Another question, if I sent up a small monthly direct debit ( to help in my search for more dds after the Tesco change next April ). Could I then put the remainder in towards the end of the financial year by debit card?

yes, you can do that..

clivep

Lily1 wrote: »

Another question, if I sent up a small monthly direct debit ( to help in my search for more dds after the Tesco change next April ). Could I then put the remainder in towards the end of the financial year by debit card?

There may be a monthly minimum for the DD.

We have Fidelity SIPPs and I think there's a £40/month minimum. I anticipate starting a £40/month DD in April (in case I've not managed sufficient replacement Tesco ones) along with a £2,400 lump sum probably April/May depending on the stock market at the time.

dunroving

Don't want to sidetrack the thread but I'm in a situation where I will possibly be limited to the £2,880 limit for people with no employment income (I just retired).

As the SIPP provider will top up the 20% tax element from HMRC, are the following calclations correct for a DD to achieve a £2,880 SIPP contribution over teh tax year:

£2,880 x 0.80 = £2,304
£2,304 divided by 12 = £192

- so if I contributed £192 by DD, I'd end up with £2,880 in the SIPP and stay within the £2,880 limit?

Thanks!

pip895

dunroving wrote: »

Don't want to sidetrack the thread but I'm in a situation where I will possibly be limited to the £2,880 limit for people with no employment income (I just retired).

As the SIPP provider will top up the 20% tax element from HMRC, are the following calclations correct for a DD to achieve a £2,880 SIPP contribution over teh tax year:

£2,880 x 0.80 = £2,304
£2,304 divided by 12 = £192

- so if I contributed £192 by DD, I'd end up with £2,880 in the SIPP and stay within the £2,880 limit?

Thanks!

The gross value is £3600 the £2880 is net so drop the 0.8 bit out of your calculation.;)

xylophone

You intend to start contributions from 6/4/2018?

Why not a contribution of £240 a month starting on 6 April 2018 and taken each 6th month thereafter?

You will then have contributed £2880 in the tax year and the provider will claim the tax relief of £720 over the year making a total of £3600.

https://www.ft.com/content/db749266-1ea0-11e7-b7d3-163f5a7f229c

Mnd

The 2880 is how much you can pay, that's why xylophone is suggesting 240 a month.tax rebate will make it up to 3600

mark1959

bioboybill wrote: »

Yes, I understand she would pay tax on the £1950, but she would still get the first 25% (the £650) tax free wouldn't she?

Yes. :beer:

Vortigern

Lily1 wrote: »

Another question, if I sent up a small monthly direct debit ( to help in my search for more dds after the Tesco change next April ). Could I then put the remainder in towards the end of the financial year by debit card?

clivep wrote: »

There may be a monthly minimum for the DD.

HL's minimum DD is £20net, equivalent to £25gross.

Lily1

£20 it is then, thanks.

Bazzh

Read through the posts regarding this subject. I am 72 retired and have a total income of £18500 gross, made up of state and company pensions. Am I right to assume I can pay £2880 into a Sipp and claim tax relief of £720 and withdraw £3550 ( £50 left in to keep account open) for the next 3 years.
Many thanks