Starting a pension just to make £720pa

Chris.R

Thanks kidmugsy
Any obvious contenders apart from HL?



By the way, HSBC financial advisors want £5k to shift money into isas over the years and do this pension trick.
I said "um just a minute" so they said OK, £3k. Rather in the best double-glazing salesman tradition?



The other HSBC guy, advising specifically on Pensions, wants another £5k if we follow his £1300 advice :think:Pensions per se will be another thread.





Less of the "old" if you don't mind :j:D

squirrelpie

There's no fee for contributing money to HL (indeed sometimes there's money-back wheezes) and no fees for withdrawing it either, nor for keeping cash in the account (but no interest either). There are fees if you have investments.

BoxerfanUK

I am drawing a DB pension, could I do this as well?

xylophone

I am drawing a DB pension, could I do this as well?

Relative draws DB and state pension and uses the HL SIPP - it helps him avoid 40% tax.

Chris.R

@boxerfan - I could quote another example, so it appears yes is the answer.:dance:

Mnd

Don't worry about MPAA if you are only earning £1k..Not relevant unless you start earning enough to put more than £4k into a pension, but from your original post that's not the plan.

Mnd

Sibbers123 wrote: »

Once you start to receive your state pension, any excess over and above your personal allowance will be taxed at 20%.

This is true but still 180 to be made even if it's all taxable

You won't receive the full £720. There will undoubtedly be fees when you put the money in, annual fees and fees when you take the money out.

Keep it as cash and wait 1 year and you will

You will be caught by the money purchase annual allowance once you take out your first 'lump' which will severely impact you if you wish to make more than £4,000 gross contributions in the future.

Not relevant going by OP

There is probably some money to be made, but it certainly won't be the £720 you suggest.

Yes it is going by what has been said

You will have to read the individuals pension provider T&Cs I suspect as well.

Don't you anyway.

Chris.R

unless you start earning enough to put more than £4k

Lordy I hope not,That would mean work :shocked: