Pension top-up query

Rob_SP

I am 60 years old and have been retired for the past 18 months.  My main pension pot is around £160k and given my current circumstances Im not likely to need to start drawing down from it for another 4 years or so given my current spending levels.  I have £20k in a savings ISA earning next to nothing.  Given I won't need to touch my pension pot for a while, should I be topping up the pot with this £20k now?

Dazed_and_C0nfused

You can't with the full £20k.

Based on your post the maximum you could contribute is £3,600 per tax year.

£2,880 that you pay and £720 tax relief which will be added by the pension company (courtesy of HMRC).

molerat

And the usual .......... have you checked you state pension entitlement ? https://www.gov.uk/check-state-pension

[Deleted User]

 Rob_SP,just being curious here. Are you supporting yourself over the next 4 years using savings or have you occasional work?

Rob_SP

[Deleted User] said:

 Rob_SP,just being curious here. Are you supporting yourself over the next 4 years using savings or have you occasional work?

Supporting myself through savings....plus I have a small local government pension amounting to around £1200 p/a

AlanP_2

Rob_SP said:

[Deleted User] said:

 Rob_SP,just being curious here. Are you supporting yourself over the next 4 years using savings or have you occasional work?

Supporting myself through savings....plus I have a small local government pension amounting to around £1200 p/a

Personally I would be drawing down enough each year to utilise my personal tax allowance so say ((12500-1200)/3)*4 which would be £15,067 tax free to be used for living and / or adding to savings.

Once you've used the savings up in your current approach you will be paying tax on the DC withdrawals, particularly once State Pension starts.

I would also be paying £3600 gross (£2880 net) into my pension and saying "thanks" to the taxman for the £720 relief.

zemarcopolo

Rob_SP said:

I am 60 years old and have been retired for the past 18 months.  My main pension pot is around £160k and given my current circumstances Im not likely to need to start drawing down from it for another 4 years or so given my current spending levels.  I have £20k in a savings ISA earning next to nothing.  Given I won't need to touch my pension pot for a while, should I be topping up the pot with this £20k now?

You may benefit from investing the 20k elsewhere rather than in pension pot. Have you considered S&S ISA?

sevenhills

zemarcopolo said:

You may benefit from investing the 20k elsewhere rather than in pension pot. Have you considered S&S ISA?

Maybe u mean a S+S SIPP?