Opening a SIPP when already retired....???

Paul_Herring

VXman said:

Paul_Herring said:

Ah...so what is the benefit of doing it through a SIPP over a S &S ISA given that you won’t be taxed on taking money from an ISA ? 

Postulation: You have £80 in your bank account. You decide to do 'stuff' with it.

SIPP -> £80 in, uplifted by (tax relief) £20 -> £100 there. Upon withdrawal, £25 tax free + £75 @ 0% or 20% income tax, total -> £100/£85 out
ISA -> £80 in, £80 out.

So, £5. Thanks. That’s what I wanted. Just struggled with the maths.

*At least* £5. Could be £20, depending on other income.
And that's per £80 you do this with.
5/80 is, as already pointed out, 6.25%.  (20/80 being, of course, 25%.)
So if you do that with the £2,880, you get between £180 and £720 back after tax.