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What is the best choice?

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Comments

  • JoeCrystal
    JoeCrystal Posts: 3,368 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Gary1984 and MallyGirl have already explained this in their earlier posts.
  • wigglers
    wigglers Posts: 163 Forumite
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    JoeCrystal said:
    Gary1984 and MallyGirl have already explained this in their earlier posts.
    Yes but they said differing amounts? 
  • QrizB
    QrizB Posts: 19,152 Forumite
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    wigglers said:
    JoeCrystal said:
    Gary1984 and MallyGirl have already explained this in their earlier posts.
    Yes but they said differing amounts? 
    Gary1984 has edited their post, and now they agree.
    You'll definitely get £941 in your LISA.
    You'll also get £1046 inside your pension, which (if the tax rules don't change before you retire) will give you £889 when you withdraw it.

    N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
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  • kimwp
    kimwp Posts: 3,104 Forumite
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    The pension tax calculation is complicated because it depends on what other income you have at the time when you withdraw it and what your strategy is re the 25% tax free lump sum. But if you will be withdrawing your bonus when you have other income using up your personal allowance and won't exceed the higher rate tax threshold and will be applying the 25% tax free allowance to each withdrawal, then your pension tax calculation is correct 
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

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  • kempiejon
    kempiejon Posts: 883 Forumite
    Part of the Furniture 500 Posts Name Dropper
    wigglers said:
    Which is the best option?   ...We really want to be in a position in a year or 2 to get a mortgage. 
    If you want to use it for that then prob best not to pop it in a pension, unless you're two years from taking it
  • Gary1984
    Gary1984 Posts: 377 Forumite
    Part of the Furniture 100 Posts Name Dropper
    Take the cash and put it in a LISA. You get to keep more of the money AND it's not locked away until retirement so you can put it towards buying a property.
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