Paying £2880 into pension when retired

imported_batman

sorry its in my wifes name was £28880  and she does not work atm  not worked for 12 months and is 56 years old 

Dazed_and_C0nfused

I think best thing to do is check what, if any, HL's charges would be in that scenario.

akh43

Is it too late to do this for this tax year?  Also wondering whether it is actually worth it if I already pay tax on income?  Retired almost a year ago and income this year from DB Pension has so far been £18,662 with another £1,079 to come next month making £19,681 for the year.  This is more than it will be going forward due to a taxable lump sum on retiring, when I briefly went into higher band tax, but has since settled down to my paying £7.40 a month in tax.  Next year income will be £12,951.  Thanks

Dazed_and_C0nfused

No.
You get a 6.25% return if you stay in cash and don't invest it.

NedS

akh43 said:

Is it too late to do this for this tax year? 

No, it's not too late. You have up until April 5th 2020 to make contributions for this tax year.

trickydicky14

I thought I had read on this forum that HL had stopped insisting you left £1000 in your sipp ?

I have just attempted to make a final cash drawdown from my account before the end of the tax year to just leave £100 in the account and was informed if I did my account would be closed and all cash returned.

Does the change in rules just relate to not now being charged for closure but the account would still be closed if £1000 is not kept in the account?

DeepSporran

trickydicky14 said:

Does the change in rules just relate to not now being charged for closure but the account would still be closed if £1000 is not kept in the account?

You are correct. According to their T&Cs,  HL “may” close the account if it holds less than £1000 but it seems that in practice they “will “ close that account unless you can persuade them otherwise. They will not charge a closure fee. 

macman

imported_batman said:

sorry its in my wifes name was £28880  and she does not work atm  not worked for 12 months and is 56 years old 

£2880?

vixen1500

Apologies in advance as I  feel sure that this has propably been queried before.   
2 years ago I opened up a SIPP  after reading through this thread.  First payment  tax year 18/19 then 19/20. Now want to withdraw some money before the tax year ends.  Roughly £7200, so 25% tax free = £1,800. Anything above is taxable if it takes my I come above £12,500. Other income £6,500 + £2,000 in interest (but if earnings below £12,500 then this is covered by the £5,000 savings allowance).
So I could be ok taking out a further £4,400 (leaving in the £1,000 to keep the account ooen) total amount to withdraw  £6,200. But this with my earnings comes to a total of £12,700,  so I  would then loose the £5,000 savings allowance.  
Therefore better off just taking out say £2,800 + £1,800 (25% taxfree) + earnings £6,500 Total  £11,100.
This would allow me to transfer £1,250 of my tax allowance to OH.
I have spoken to Pension wise, but got slightly confused regarding Drawdown and UFPLS,   Reading through the thread it seems UFPLS is what everyone uses,  is drawndown when you take 25% tax free and then have a monthly payment?
Sorry if I have gone on, but just wanted to clarify things before sending my forms in (hopefully not left it too late to withdraw before the end of the tax year)
Many thanks 

Dazed_and_C0nfused

You have misunderstood how the savings starter rate of tax works.

But I'm a bit lost as to where yo use getting the £12,700 figure from in the first place?

What is the £6,500 other income?  Pension, wages, business profit???

If you have £6,500 and £4,400 where is the other £1,800 coming from?  What is this income, pension, wages, business profit???