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Lump sum into a pension
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Partner is 56, exfirefighter, on a half pension.
Has just received a lump sum from overpayments made. He paid for 32 years, max pension is 30 years and a group took it too court and resulted in 2 years premiums being refunded.
This isnt a vast amount of money, but it was an unexpected windfall.
We havent got any plans for this and wondered if it would be possible /worth it to put into a sipp. Do you get 20% tax relief on lump sums.
I can see two advantages if so, 1, it would increase the value by 20% and due to his age could drawn down next year?
Or keep it there and in 11 years its a little bit extra pension. (He lost half due to divorce settlements)
I'd compare funding a SIPP to funding an ISA for your current and future tax rates.“So we beat on, boats against the current, borne back ceaselessly into the past.”0
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