Paying £2880 into pension when retired

jerrysimon

If you want to gain the £720 each year by paying in £2880 then HL don't charge anything providing you leave £1000 in your draw down account for a rolling 12 months. I created one a couple of year before my wife finished full time work and managed to gain back about £5K in tax refunds (wish I had started a couple of years earlier) because she was only earning 8K. I plan to put another £2880 in again this and every year as she does not get enough income to pay tax. Its a no brainer. Our 2*20K in Santander accounts only earns £500 a year. Unfortuately she only earns about £2500K now and is effectively retired though we are leaving her pension (LGPS) where it is, until she gives up completely. I retired early last year and do pay tax on my pension so no point me contributing to a SIPP.

She will also be due full SP whereas I will recieve a reduced amount having a public sector DB pension. We have to wait 10 years for those anyway. Been retired early (56) almost a year now and I plan on doing a post about how its gone so far. Lots of mixed emotions but overall I know I did the right thing and would never go back to full time work again. Wondering if we should cash in her LGPS pension given we will have my DB pension (she gets half if I expire) and two SPs in ten years time.

Chrisv

jerrysimon wrote: »

... I retired early last year and do pay tax on my pension so no point me contributing to a SIPP.
...

It could be worth £180 a year...

jerrysimon

Chrisv wrote: »

It could be worth £180 a year...

Thanks. Yes better than a kick up the !!! and more than I get with £2880 sat in Sandander.

Maybe I will do a SIPP for me too :T

dunstonh

Joey_Soap wrote: »

But by exactly the same yard stick, Close Bros or Cavendish who both charge 0.25% will be almost half the cost of HL for doing exactly the same thing. Whose pocket is the 0.2% better being in, yours or HL's?

Not quite the same thing. HLs software is far superior to Fidelity.

Platforms are a value added service. You are paying for them. What is best. Paying less for something that fails to deliver to your expectations or paying a bit more for something that does deliver to your expectations/requirements?

Deneb

dunstonh wrote: »

Not quite the same thing. HLs software is far superior to Fidelity.

There are also virtually no fees for drawdown with HL, whereas many other providers charge set up fees or have charges for individual payments.

xylophone

whereas I will recieve a reduced amount having a public sector DB pension. We have to wait 10 years for those anyway.

You have obtained a new state pension statement?

Had you considered voluntary contributions?

https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

jerrysimon

xylophone wrote: »

You have obtained a new state pension statement?

Had you considered voluntary contributions?

Yep I have two quotes for my wife and I. Actually I think my wife does need another 2 years so worth it given she wont pay tax on what she gets. I am missing about 6 or 7 years so considerably more for me and it would be taxed. I can't get it for 10 years so dont really want to commit a large sum in additional contributions until as late as possible.

Joey_Soap

dunstonh wrote: »

Not quite the same thing. HLs software is far superior to Fidelity.

Platforms are a value added service. You are paying for them. What is best. Paying less for something that fails to deliver to your expectations or paying a bit more for something that does deliver to your expectations/requirements?

(My bold and red highlight) - Better to use the Close Bros platform then. Still almost half the price of HL and does everything you could reasonably expect, in my opinion.

But it isn't a bit more, is it? It can be a very serious amount of money every month. I was paying HL more than GBP 120 a month on my SIPP/ISA. I moved it to Interactive Investor for a bargain quarterly fee. My portfolio has grown by another 60% since the move. I'd be paying HL even more now than I was then. I pay II the same even if my SIPP/ISA triples in value.

pip895

Joey_Soap wrote: »

But it isn't a bit more, is it? It can be a very serious amount of money every month.

No one is arguing that you can't save considerable sums with a large pot but we are talking about a very small pot here, and HLs customer support and website are difficult to beat.

jerrysimon

Deneb wrote: »

There are also virtually no fees for drawdown with HL, whereas many other providers charge set up fees or have charges for individual payments.

I dont recall ANY fees from HL as long as you keep a min of £1000 in the draw down account for 12 months ?

PS I had a cash only SIPP as I drew out the money after 12 months to gain the tax benefit.