Pension & Continue to work?

nigelibrown

I will start to draw my final salary pension in June and continue to work. As this will push me into the 40% tax bracket I am looking for a TAX efficient way of investing this additional income until I retire from working. SIPP? ISA? Premium bonds?

MallyGirl

Is there no option to defer?

If not put more in the pension with your current employer. If that is FS then are there AVCs, otherwise its a SIPP or other personal pension product.

Brynsam

If you mean 'tax efficient' in the sense it will reduce your tax bill while you are a higher rate tax payer, further pension contributions to a personal pension would make sense, unless you are already hitting maximum levels and the tax charge would outweigh any tax relief. Does your employer offer any sort of pension you could join to get the benefit of employer contributions while you are still working? If there is no late retirement option in the DB scheme, they should do.

Otherwise look at Enterprise Investment Scheme opportunities (google for more info) for immediate tax relief.