Buying additional pension with a lump sum in the Teachers Pension Scheme

chucknorris

My question is about the exact process of claiming via the tax return form, and achieving the 40% tax relief without first obtaining 20% from the pension provider, why on earth are you introducing additional issues? But for the record I pay tax on approx £100k earnings annually, so I am definitely a 40% tax payer, and my relevant income is only about £22k, so I am only talking about claiming the relief on that comparatively small amount, why can't you just accept that? Can you and also anyone else please refrain from confusing the issue, if you can't answer the question that I am asking.

atush

chucknorris said:

atush said:

Are you going to retire early before you scheme age?  have you looked into a PP or Sipp instead to reduce your 40% tax?

In my opinion buying additional pension offers much more value than a SIPP. I know that is subjective, but that is my opinion.

It could be, but not if you retire early with a drastically reduced pension. 

eastcorkram

atush said:

chucknorris said:

atush said:

Are you going to retire early before you scheme age?  have you looked into a PP or Sipp instead to reduce your 40% tax?

In my opinion buying additional pension offers much more value than a SIPP. I know that is subjective, but that is my opinion.

It could be, but not if you retire early with a drastically reduced pension. 

Oh no. Now you've done it 

chucknorris

atush said:

chucknorris said:

atush said:

Are you going to retire early before you scheme age?  have you looked into a PP or Sipp instead to reduce your 40% tax?

In my opinion buying additional pension offers much more value than a SIPP. I know that is subjective, but that is my opinion.

It could be, but not if you retire early with a drastically reduced pension. 

We are beyond comfortable, I will probably retire in 4 years, aged 66 (but I may work on as I like my job), and we will have a combined state/defined defined pension of about £34k, and we have combined investments of approx £6m (that is current value, in this downturn, so that will probably bounce back up to approx £7m. I am only looking for value! We don't 'we do not need anything approaching dramatic to occur, to enjoy a good financial retirement.

We have so much already invested in investments which have risk, so it is great value to buy additional pension in the TPS which offers a great return at such little risk. I really would like to invest a lot more in the TPS additional pension, if my relevant income was higher (it is mainly dividend income, corporate bond interest and rental income), and of course the maximum allowed to buy was also higher. I have already bought the max allowed in the pre 2015 scheme, but I join the post 2015 scheme in a few months this August, and I can then invest more, which I plan to do.

chucknorris

eastcorkram said:

atush said:

chucknorris said:

atush said:

Are you going to retire early before you scheme age?  have you looked into a PP or Sipp instead to reduce your 40% tax?

In my opinion buying additional pension offers much more value than a SIPP. I know that is subjective, but that is my opinion.

It could be, but not if you retire early with a drastically reduced pension. 

Oh no. Now you've done it 

What has she done? Read my post above! Please explain what you mean?