Provider shortlist for £2880 per year pension

Albermarle

Pat38493 said:

Audaxer said:

Pat38493 said:

Would I be right in thinking that it doesn't really make sense for me to do this unless it's done with my wife's money, if I am a higher rate taxpayer in employment but expecting to be basic rate on withdrawal?

I would be better off paying the spare £2880 into my own pension if it's my money?

If you are currently a higher rate tax payer and when you withdraw it you will be a basic rate tax payer, then you benefiting from doing it.  If your wife pays £2,880 into a SIPP and currently has enough free personal tax allowance to take it out without paying any tax, she will benefit by gaining the full £720.

It would therefore make sense for you both to do it if you can afford it.

My wife has an NHS DB pension and is a BR taxpayer

Then you will benefit more than she will from new DC pension contributions.
Also she will have  to set up a new pension herself, and make contributions and withdrawals and maybe have to contact HMRC. If she is not that way inclined then she might question whether it is worth it for £180 pa , especially if you generally are not short of money.
Working off my own experience here   

Pat38493

Albermarle said:

Pat38493 said:

Audaxer said:

Pat38493 said:

Would I be right in thinking that it doesn't really make sense for me to do this unless it's done with my wife's money, if I am a higher rate taxpayer in employment but expecting to be basic rate on withdrawal?

I would be better off paying the spare £2880 into my own pension if it's my money?

If you are currently a higher rate tax payer and when you withdraw it you will be a basic rate tax payer, then you benefiting from doing it.  If your wife pays £2,880 into a SIPP and currently has enough free personal tax allowance to take it out without paying any tax, she will benefit by gaining the full £720.

It would therefore make sense for you both to do it if you can afford it.

My wife has an NHS DB pension and is a BR taxpayer

Then you will benefit more than she will from new DC pension contributions.
Also she will have  to set up a new pension herself, and make contributions and withdrawals and maybe have to contact HMRC. If she is not that way inclined then she might question whether it is worth it for £180 pa , especially if you generally are not short of money.
Working off my own experience here   

Yes you guessed right - her comments when I explained this were "all that hassle for getting £180 a year - can't be bothered" or something to that effect.

I tried to point out that this might only be 20 minutes work to set up initially and 10 minutes a year, so an hourly payback probably higher than when she was working, but the human brain doesn't always work like that.  It's fine to spend hours trawling websites to save a few pounds on the cost of various shopping items, but spending 30 minutes to get £180 free is "too much hassle"  

This means that if it happens I will have to set it up and manage it for her I guess.

ian16527

Pat38493 said:

Albermarle said:

Pat38493 said:

Audaxer said:

Pat38493 said:

Would I be right in thinking that it doesn't really make sense for me to do this unless it's done with my wife's money, if I am a higher rate taxpayer in employment but expecting to be basic rate on withdrawal?

I would be better off paying the spare £2880 into my own pension if it's my money?

If you are currently a higher rate tax payer and when you withdraw it you will be a basic rate tax payer, then you benefiting from doing it.  If your wife pays £2,880 into a SIPP and currently has enough free personal tax allowance to take it out without paying any tax, she will benefit by gaining the full £720.

It would therefore make sense for you both to do it if you can afford it.

My wife has an NHS DB pension and is a BR taxpayer

Then you will benefit more than she will from new DC pension contributions.
Also she will have  to set up a new pension herself, and make contributions and withdrawals and maybe have to contact HMRC. If she is not that way inclined then she might question whether it is worth it for £180 pa , especially if you generally are not short of money.
Working off my own experience here   

This means that if it happens I will have to set it up and manage it for her I guess.

This is the problem I have as my wife has anxiety issues with talking to the pension company on the phone. She has to manage the drawdown part as its her pension and cannot be done on line initially.

Pat38493

ian16527 said:

Pat38493 said:

Albermarle said:

Pat38493 said:

Audaxer said:

Pat38493 said:

Would I be right in thinking that it doesn't really make sense for me to do this unless it's done with my wife's money, if I am a higher rate taxpayer in employment but expecting to be basic rate on withdrawal?

I would be better off paying the spare £2880 into my own pension if it's my money?

If you are currently a higher rate tax payer and when you withdraw it you will be a basic rate tax payer, then you benefiting from doing it.  If your wife pays £2,880 into a SIPP and currently has enough free personal tax allowance to take it out without paying any tax, she will benefit by gaining the full £720.

It would therefore make sense for you both to do it if you can afford it.

My wife has an NHS DB pension and is a BR taxpayer

Then you will benefit more than she will from new DC pension contributions.
Also she will have  to set up a new pension herself, and make contributions and withdrawals and maybe have to contact HMRC. If she is not that way inclined then she might question whether it is worth it for £180 pa , especially if you generally are not short of money.
Working off my own experience here   

This means that if it happens I will have to set it up and manage it for her I guess.

This is the problem I have as my wife has anxiety issues with talking to the pension company on the phone. She has to manage the drawdown part as its her pension and cannot be done on line initially.

I would hope that she could just be with me on speakerphone and just authorise the activity as needed.  Yes I got the impression that you have to go through a telephone process to make the withdrawal - at least for the first withdrawal.

Audaxer

Pat38493 said:

ian16527 said:

Pat38493 said:

Albermarle said:

Pat38493 said:

Audaxer said:

Pat38493 said:

Would I be right in thinking that it doesn't really make sense for me to do this unless it's done with my wife's money, if I am a higher rate taxpayer in employment but expecting to be basic rate on withdrawal?

I would be better off paying the spare £2880 into my own pension if it's my money?

If you are currently a higher rate tax payer and when you withdraw it you will be a basic rate tax payer, then you benefiting from doing it.  If your wife pays £2,880 into a SIPP and currently has enough free personal tax allowance to take it out without paying any tax, she will benefit by gaining the full £720.

It would therefore make sense for you both to do it if you can afford it.

My wife has an NHS DB pension and is a BR taxpayer

Then you will benefit more than she will from new DC pension contributions.
Also she will have  to set up a new pension herself, and make contributions and withdrawals and maybe have to contact HMRC. If she is not that way inclined then she might question whether it is worth it for £180 pa , especially if you generally are not short of money.
Working off my own experience here   

This means that if it happens I will have to set it up and manage it for her I guess.

This is the problem I have as my wife has anxiety issues with talking to the pension company on the phone. She has to manage the drawdown part as its her pension and cannot be done on line initially.

I would hope that she could just be with me on speakerphone and just authorise the activity as needed.  Yes I got the impression that you have to go through a telephone process to make the withdrawal - at least for the first withdrawal.

I'm with HL and recently took a UFPLS, by firstly answering questions online, following which I was sent an application form to complete and post back. No telephone call was needed.

WastedWords

Pat38493 said:

Yes you guessed right - her comments when I explained this were "all that hassle for getting £180 a year - can't be bothered" or something to that effect.

A night away in a decent hotel, a new dress, shoes, handbag, couple of rounds of golf, car serviced, couple of flights to Paris, 2-3 extra hours of heating, couple of fancy meals out, fancy bottle of malt, or a birthday present of you.............