Sipp and UC

Alice_Holt

Paulm1978 said:

I’m not saying your wrong you just come across aggressive with your post 
and according to a sipp I can put up to 40k in if I’m earning 

what’s the difference from me putting my money into a sipp before I apply for UC and them none  the wiser ??
Or applying for UC then putting it into a sipp??

      If you are only earning £28k, I'm afraid you can't put £40k in during one tax year.   Do some more research.


     Pensions are a important  long term financial decision. You may be better off:
   a)  maximising employer workplace contributions;
   b) checking potential for added years;
   c) Salary sacrificing;
   d) topping up NI conributions for the SP.
Etc, etc.

 Dumping money in a Sipp on the basis that it may enable you to claim UC, is not a sensible financial strategy. 

What platform, and what investment product will you use for your SIPP?

[Deleted User]

First result on google 

https://www.pensionbee.com/pensions-explained/pension-contributions/pension-contribution-limits

The pension contribution limit is currently 100% of your income, with a cap of £40,000

Alice_Holt

It's not difficult to foresee circumstances in which the OP's cunning scheme to claim UC could go badly awry for her.  (I'm assuming the OP's statement on this thread that she could potentially claim UC is indeed correct.)    

- OP dumps c. £43k in a SIPP (one tranche now, one in April in the new tax year);
- OP then claims UC.  A DWP decision maker after examining her bank accounts determines deliberate deprivation of capital, and the notional capital rules apply.  Any UC monies stop, and remain stayed for several years (i.e until the £43k is eroded by an assumed UC entitlement) ; 
- OP antagonises her manager / employer. (Or for whatever reason) OP loses her job;
- OP has now no income to pay her rent (UC still subject to notional capital rules):
- And the OP is unable to access the money she dumped in her SIPP as she is not yet 55.