To SIPP, or not to SIPP ....?

valiant24

singhini said:

IanManc said:

singhini said:

Worth remembering 
1)   We don't yet have the finalised legislation, so things could change.
2)   You might fall seriously ill / terminally ill and be able to cash in your pensions tax free under special rules for end of life (remember 1 in 2 people get cancer)

Sorry to sound so negative but its a reality. 

If i was in your position i would keep putting into the SIPP and concentrate on reducing my other assets so I'm not liable to IH

In the UK roughly a quarter of all deaths are from cancer, and half of those are deaths of people over 75. 

In the long term we all die, but saying that pensions can be cashed in under the rules for end of life and following that with "remember 1 in 2 people get cancer" is an unhelpful non-sequitur.

Neither Enoch or Elijah died

>> Neither Enoch or Elijah died
Yet.

boingy

valiant24 said:

What would be ideal would be to know the date on which I am going to die! 

I think we can all agree on that. It would certainly make financial planning a whole lot easier. 

singhini

valiant24 said:

singhini said:

IanManc said:

singhini said:

Worth remembering 
1)   We don't yet have the finalised legislation, so things could change.
2)   You might fall seriously ill / terminally ill and be able to cash in your pensions tax free under special rules for end of life (remember 1 in 2 people get cancer)

Sorry to sound so negative but its a reality. 

If i was in your position i would keep putting into the SIPP and concentrate on reducing my other assets so I'm not liable to IH

In the UK roughly a quarter of all deaths are from cancer, and half of those are deaths of people over 75. 

In the long term we all die, but saying that pensions can be cashed in under the rules for end of life and following that with "remember 1 in 2 people get cancer" is an unhelpful non-sequitur.

Neither Enoch or Elijah died

>> Neither Enoch or Elijah died
Yet.

Even more reason to keep putting money into a SIPP.

Then there's the possibility of resurrection to consider (you maybe hanging around quite some time).

Good day to one and all (I'm off to ponder my own fate)

EthicsGradient

Getting back to the topic of SIPP contributions, I'm in a somewhat similar position, but without having hit the cap on the tax free lump sum, and I came to the conclusion that it is that lump sum that makes it still worth me contributing the maximum to my SIPP.

One thing I want to see made clear is how pensions will be counted, in an inheritance, for the "give at least 10% to charities and your IHT rate goes down to 36%" calculation. Charities will receive money out of an unused pension pot particularly efficiently - no income tax, no IHT (altogether now, sing - "no money back, no guarantee..."). If that counts as the 10%, leaving enough of your pot to charities would be efficient, though writing a will (and informing the pension manager) to keep it at above 10%, but not too much above 10%, might be very tricky.

valiant24

EthicsGradient said:

Getting back to the topic of SIPP contributions, I'm in a somewhat similar position, but without having hit the cap on the tax free lump sum, and I came to the conclusion that it is that lump sum that makes it still worth me contributing the maximum to my SIPP.

One thing I want to see made clear is how pensions will be counted, in an inheritance, for the "give at least 10% to charities and your IHT rate goes down to 36%" calculation. Charities will receive money out of an unused pension pot particularly efficiently - no income tax, no IHT (altogether now, sing - "no money back, no guarantee..."). If that counts as the 10%, leaving enough of your pot to charities would be efficient, though writing a will (and informing the pension manager) to keep it at above 10%, but not too much above 10%, might be very tricky.

Yes I'd like to understand this in more detail too.