Transferring tax free pension to stocks and shares isa every year

gambleruk

I will be starting to withdraw my pension next year, (£15,080 as give the wife my marriage allowance), to make the most of my tax allowance and just wondered how people went about this. Do you just open a stocks and shares Isa with your same provider, pick the same funds and just buy once the pension funds have cleared for simplicity or do you pick a different provider. I realise I may have to pay tax at first and claim it back.

I am not going to be using the money to begin with, it is just so over the next 12 years I can get as much out of my pension tax free before state pension kicks in and I start getting taxed on it.

I understand the implications of MPAA and I will be adding £2880 each year as well.

If there is anything else I have not thought of please let me know.

Many thanks in advance

Mark_d

So you retired buy not started claiming state pension yet?  Each year you want to take come cash out of your pension and use it to fund ISA as well as make further contributions into you pension?

Once you have taken cash out of your pension and paid any necessary tax, you can invest the money however you see fit. As you are of retirement age and the sums of money aren't huge, maybe you want to invest in cash ISAs with different fixed rate periods

gambleruk

I turn 55 next year so hence 12 years of trying to make the most of my tax allowance as no earnings, I was just wondering how other people went about it as simply want my yearly tax free pension funds into ISA funds so when I do need to drawdown in the future then I can from the ISA without paying tax. I will be keeping the investments exactly the same so it is as if the pension funds have just moved over to the ISA obviously I will have time out of the market but hopefully this will just balance out over the 12 years.

Albermarle

gambleruk said:

I will be starting to withdraw my pension next year, (£15,080 as give the wife my marriage allowance), to make the most of my tax allowance and just wondered how people went about this. Do you just open a stocks and shares Isa with your same provider, pick the same funds and just buy once the pension funds have cleared for simplicity or do you pick a different provider. I realise I may have to pay tax at first and claim it back.

I am not going to be using the money to begin with, it is just so over the next 12 years I can get as much out of my pension tax free before state pension kicks in and I start getting taxed on it.

I understand the implications of MPAA and I will be adding £2880 each year as well.

If there is anything else I have not thought of please let me know.

Many thanks in advance

You can stick with the same provider, or start a different one, it is up to you. It depends on if the charges and choice of investments is acceptable.
As the withdrawn money will go to your bank account, it is just as easy to send it another provider as the current one.
Personally I would probably use the opportunity to look around to see how different providers compared.
Investing in a S&S ISA can be cheaper than in a pension, as the provider has less hassle in terms of tax, withdrawals etc.

poseidon1

gambleruk said:

I turn 55 next year so hence 12 years of trying to make the most of my tax allowance as no earnings, I was just wondering how other people went about it as simply want my yearly tax free pension funds into ISA funds so when I do need to drawdown in the future then I can from the ISA without paying tax. I will be keeping the investments exactly the same so it is as if the pension funds have just moved over to the ISA obviously I will have time out of the market but hopefully this will just balance out over the 12 years.

All sounds quite laudable, but I am a little confused about what you will be actually  living off, if you recycle drawdown from your pension straight into ISAs and accumulate there for the next 12 years. You say you will keep the same investments in the ISA as maintained in the sipp so no indication you will be drawing on the isa for subsistence, or have I misunderstood?

ader42

Make sure you consider your current and future Inheritance Tax position.

xylophone

I am a little confused about what you will be actually  living off, i

His wife's income?

as give the wife my marriage allowance),

OP, have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension