Reaching £1000 interest PSA

RG2015

drlabman said:

RG2015 said:

drlabman said:

RG2015 said:

aroominyork said:

Have you considered individual gilts? See this thread. TN25, maturing 31/1/25 but tradeable whenever you want, is currently yielding about 5.3% with nearly all of it a non-taxed capital gain.

Interesting thought, but one of my criteria is simplicity.

I also have an additional route as my wife has about £18k unused personal tax allowance. This is the destination for longer fixes. That said, I am currently limiting these to no more than one year on a monthly maturity ladder.

These high interest rates are turning into a right old nightmare.  I've had to start putting savings in my wife's name again and, shock horror, even into ISAs.  Haven't had to bother for years.  Even worse, as I rapidly approach state pension age, I'm dangerously close to (if not already over) the 40% tax threshold - and I hate paying 40% tax with a passion.

You may be able to reduce your tax liability and avoid the dreaded 40% by contributing to a SIPP. I have been drawing my SP for over a year and am going to look at SIPPs.

It will be very tax efficient for my wife as she is a few years off SP age and may also save me a bit of tax.

Must admit, I know nothing about SIPPs - they became "a thing" when I was living abroad I think.  I shall take a look.  It's fair to say that these are first world problems though.

Have a read of the thread below.

https://forums.moneysavingexpert.com/discussion/6448303/sipp-advice-for-a-non-tax-payer-over-55/p1

AndyTh_2

drlabman said:

RG2015 said:

drlabman said:

RG2015 said:

aroominyork said:

Have you considered individual gilts? See this thread. TN25, maturing 31/1/25 but tradeable whenever you want, is currently yielding about 5.3% with nearly all of it a non-taxed capital gain.

Interesting thought, but one of my criteria is simplicity.

I also have an additional route as my wife has about £18k unused personal tax allowance. This is the destination for longer fixes. That said, I am currently limiting these to no more than one year on a monthly maturity ladder.

These high interest rates are turning into a right old nightmare.  I've had to start putting savings in my wife's name again and, shock horror, even into ISAs.  Haven't had to bother for years.  Even worse, as I rapidly approach state pension age, I'm dangerously close to (if not already over) the 40% tax threshold - and I hate paying 40% tax with a passion.

You may be able to reduce your tax liability and avoid the dreaded 40% by contributing to a SIPP. I have been drawing my SP for over a year and am going to look at SIPPs.

It will be very tax efficient for my wife as she is a few years off SP age and may also save me a bit of tax.

Must admit, I know nothing about SIPPs - they became "a thing" when I was living abroad I think.  I shall take a look.  It's fair to say that these are first world problems though.

Your workplace pension, if you have one, might allow additional contributions as well, if you don't want to branch out.