Can I pay into pension after retirement

jamesd

MoneyGeoff said:

As above, if you have to pay tax on the withdrawal the the gain is only £180 plus you have to pay annual fees for the sipp, fund fees and then more fees when you come to drawdown. If it was with HL I think the fees would outweigh the gain, not certain about that though.

I am. You're wrong unless you deliberately try to arrange it.

There is no annual fee for the SIPP.
There are no charges for drawdown, including not for starting or changing amounts.
There is a 0.45% fee a year charged monthly on top of fund charges.
There is no charge on cash.

Use cash and you pay exactly no money and some of your time.


If you wanted to arrange to lose money in charges you might use a money market fund with minimal growth but still the holding charge.

Alternatively, you might use an equity fund and hope that your investment makes money.

MoneyGeoff

Ah fair enough, I thought HL Sipp had an annual charge on top of the 0.45% The .45% is irrelevant when comparing an ISA to the Sipp as any comparison would assume you invested in the same fund. Sipp looks better then, even if under 55 now and having to pay tax in drawdown.

Albermarle

JGB1955 said:

I just left my money in HL as cash, and then took it out again with the tax uplift but no charges.  £2880 in (x 3), £10,800 out. £2160 in my pocket... thanks!  

That only works if you are not a taxpayer/have sufficient personal allowance left.
If you are a taxpayer because you  have income from earnings/pensions/rental income etc then the benefit is reduced to max £540 over three years.