SIPP/ Retired/ + Taxable Income

[Deleted User]

Hello again all,
I am asking this query on a new thread as I don't want to confuse and mix with others.
Retired spouse(no income) has been taking advantage of the £2880 into SIPP and receiving £720 tax top up. Each year a sum is withdrawn from Sipp(£11500 appx) which is under the personal allowance and does not attract any tax payable.All good.
Spouse will soon be taking deferred company pension. The amount of annual pension is over the personal allowance and tax will be payable.(not higher bracket)
QUERY: Is there any benefit in continuing the SIPP payments as they will now be taxable? If so, could I please have a clear explanation for a layperson to understand.
Regards

triplea35

£2880 deposited made up to £3600.
25% (£900) can be withdrawn tax free)
£2700 taxed at 20% (£540) leaves £2160.
£2160 + £900 = £3060. Minus £2880 initial investment leaves a profit of £180
HTH

[Deleted User]

triplea35,
Thank you for the speedy and concise reply. It seems like an appx 6% gain, very much worthwhile.
Regards

Dazed_and_confused

Don't forget other potential consequences.

If the retired spouse has taxable income from savings interest then continuing to take income from the SIPP may limit the amount of savings starter rate of tax available. From what you have posted the full £5,000 has been available but that will reduce, potentially to zero, depending on how much the total pension income is going to be going forward.

There will still be the savings nil rate of tax (aka Personal Savings Allowance) available but something to bear in mind if the additional pension income is going to make some of the savings interest taxable at 20% instead of 0%.

[Deleted User]

Dazed and confused,
Thanks for the information. Not applicable in this case but will keep in mind.
Regards