Where to invest 25k

Ferboz

Hello all, 
I wondered if anyone could give me a few ideas? I am about to get a 25k payment for a small pension. I and my husband currently have an ISA, so we cannot add to this as its a fixed rate one. My husband is retired but i still work full time & pay tax @ 20%. with savings rates currently reasonably high, 25k into most accounts will push me over the amount i can make in interest before being taxed. ( or so i believe). Thankyou in advance!

ColdIron

As long as you have subscribed less than £20,000 into an ISA since 06/04 you can open another one for the balance

kempiejon

£25k cash lump sum, could you clear debts overpay the mortgage?
If you and SO have not used the full £40k of ISAs you can open others.
Premium bonds are outside of tax if that's your concern.
SIPPs are OK for tax free but there are some limits, money is locked away and you might have to be aware of pension recycling.
Short dated low coupon gilts are a more exotic technique to keep cash like savings and make a few percentage points while avoiding tax on savings. Not for the novice who hasn't bought shares before.

wjr4

What do you mean by ‘for a small pension’?

Heytheremrblue

wjr4 said:

What do you mean by ‘for a small pension’?

No expert here but I would guess they have drawn ‘a small pension’ and the 25k is the 25% lump sum ?

kimwp

If the £25k from the pension is not all exempt from tax by the 25%, some of it might need to be added to your income for tax calculations

Ferboz

Thankyou all for your comments.

wjr4 -I simply meant, its a small pension that i had from a previous employment, which i have not paid into for 15 years is available to me soon as i will be 60. 

kempiejon - i am lucky enough not to hve a mortgage now, nor debts. I am not very brave so doubt i would do any of the last paragraph in your comment

kimwp - i think its a tax free sum. i had a few choices and opted for the maximum tax free sum

Thankyou again..i think am going to open another ISA 

wjr4

Ferboz said:

Thankyou all for your comments.

wjr4 -I simply meant, its a small pension that i had from a previous employment, which i have not paid into for 15 years is available to me soon as i will be 60. 

kempiejon - i am lucky enough not to hve a mortgage now, nor debts. I am not very brave so doubt i would do any of the last paragraph in your comment

kimwp - i think its a tax free sum. i had a few choices and opted for the maximum tax free sum

Thankyou again..i think am going to open another ISA 

So I assume it’s from a final salary pension then?