Carers Allowance - Pension or Isa

Albermarle

ossian said:

Scrounger said:

NedS said:

If you anticipate that you will be a tax payer later in retirement, it makes sense to fully utilize your tax free allowance now and get as much out of your pensions as you can tax free.

The downside to doing this is that once you've taken even a single penny of taxable income from a pension, you will be limited to paying in no more than £4000pa in the future (called the MPAA), which may be limiting if you wanted to go back into employment and and contribute more than £4000 per year into a pension.

To avoid triggering the MPAA, you can use the 'Small Pots Rule' to withdraw up to £30,000 (in 3 chunks of <=£10k) over 2 or 3 tax years. 

Scrounger

 Am I right in thinking that the small pot payments are tax free?
Is there any broker than is better than the others for small pots or is it much of a muchness?

Some will not offer a withdrawal under the small pots rule at all . Vanguard is one I think .
For sure HL, AJ Bell and Fidelity ( and others will) . I think only HL will split three small pots from a  larger one . Probably others will not, as it is seen as against the spirit of the original reason for the small pots rule and probably quite a lot of admin involved.