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Retirement saving alternatives with tapered allowance
djohnst
Posts: 39 Forumite
Hi All,
I’m looking for some guidance on how to best maximise my retirement savings and minimise my tax liability. I am 36 years old and in a perhaps unusual position in that my earnings have gone from £25k per year to over £250k per year in less than 10 years. The impact of this is that there were many years where I couldn’t afford to put much into my pension, and now the tapered annual allowance prevents me from contributing significantly.
I have approx. £170k in my pension fund so far but now need to look at ways to increase that whilst subject to the £10k per year cap under tapering.
My wife (who doesn’t work) and I both have S&S ISAs which we contribute to but rarely max out. Is filling both of these ISAs the best initial option? Or should I be looking at a VCT for the more significant tax break?
Thanks in advance,
djohnst
I’m looking for some guidance on how to best maximise my retirement savings and minimise my tax liability. I am 36 years old and in a perhaps unusual position in that my earnings have gone from £25k per year to over £250k per year in less than 10 years. The impact of this is that there were many years where I couldn’t afford to put much into my pension, and now the tapered annual allowance prevents me from contributing significantly.
I have approx. £170k in my pension fund so far but now need to look at ways to increase that whilst subject to the £10k per year cap under tapering.
My wife (who doesn’t work) and I both have S&S ISAs which we contribute to but rarely max out. Is filling both of these ISAs the best initial option? Or should I be looking at a VCT for the more significant tax break?
Thanks in advance,
djohnst
0
Comments
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Spouse pension, S&S ISAs, VCTs & EIS (subject to caveats). Unwrapped holdings.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Maybe spend some of your earnings on proper financial advice - the sort based on a full fact find/understanding of your position, attitude to risk etc?Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!0
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