Investment v Savings when retired

dont_use_vistaprint

I retired last year at age 53. I have two main sources of Money one is in a IPP that I have now switched off the auto trading features and I manage myself so it’s operating very similar to SIPP.

The other is a collection of savings accounts ISA and non-ISA.

After my last tax return inland revenue wrote to me saying I no longer need to submit annually.  I am tax resident with the regular personal allowance and savings allowance.


The cash savings is earning between 4.5% and 5%. The investments are quite high risk 4 and 5 out out of  five , 100% stocks and volatile but I’m happy with the results and future outlook.

What  I want to do is shift some of the money from savings into the IPP or similar to try and match the growth rate of 4.5 to 5% and avoid exceeding my personal allowance, with the lowest level of risk/0 risk if that’s possible within an IPP ?

As a non-employed/non-taxpayer, how much can I pay into a SIPP per year and what kind of funds should I choose? That would be similar in nature to the best savings accounts available at the moment?

thanks 

Dazed_and_C0nfused

dont_use_vistaprint said:

I retired last year at age 53. I have two main sources of Money one is in a IIP that I have now switched off the auto trading features and I manage myself so it’s operating very similar to SIPP.

The other is a collection of savings accounts ISA and non-ISA.

After my last tax return inland revenue wrote to me saying I no longer need to submit annually.  I am tax resident with the regular personal allowance and savings allowance.

The cash savings is earning between 4.5% and 5%. The investments are quite high risk 4 and 5 out out of  five , 100% stocks and volatile but I’m happy with the results and future outlook.

What  I want to do is shift some of the money from savings into the IIP or similar to try and match the growth rate of 4.5 to 5% and avoid exceeding my personal allowance, with the lowest level of risk/0 risk if that’s possible within an IIP ?

As a non-employed/non-taxpayer, how much can I pay into a SIPP per year and what kind of funds should I choose? That would be similar in nature to the best savings accounts available at the moment?

thanks 

£2,880 net, which becomes £3,600 gross with the basic rate relief added.

Whether you pay £720 in tax in the same tax year is irrelevant.

NB.  There are no extra "allowances" for savings and investments. But there are three 0% tax rates/bands you may well be able to utilise.

DRS1

What is an IIP?

Stubod

..Investers in People???......

..or possibly India Industrial Production..????

dont_use_vistaprint

Dazed_and_C0nfused said:

dont_use_vistaprint said:

I retired last year at age 53. I have two main sources of Money one is in a IIP that I have now switched off the auto trading features and I manage myself so it’s operating very similar to SIPP.

The other is a collection of savings accounts ISA and non-ISA.

After my last tax return inland revenue wrote to me saying I no longer need to submit annually.  I am tax resident with the regular personal allowance and savings allowance.

The cash savings is earning between 4.5% and 5%. The investments are quite high risk 4 and 5 out out of  five , 100% stocks and volatile but I’m happy with the results and future outlook.

What  I want to do is shift some of the money from savings into the IIP or similar to try and match the growth rate of 4.5 to 5% and avoid exceeding my personal allowance, with the lowest level of risk/0 risk if that’s possible within an IIP ?

As a non-employed/non-taxpayer, how much can I pay into a SIPP per year and what kind of funds should I choose? That would be similar in nature to the best savings accounts available at the moment?

thanks 

£2,880 net, which becomes £3,600 gross with the basic rate relief added.

Whether you pay £720 in tax in the same tax year is irrelevant.

NB.  There are no extra "allowances" for savings and investments. But there are three 0% tax rates/bands you may well be able to utilise.

Yes I understand this thank you, I guess not having anny other  income. It’s just simpler for me to add them together to a single allowance to give me the maximum I can earn in interest before paying tax.

dont_use_vistaprint

DRS1 said:

What is an IIP?

It’s like a SIPP but was initially managed by a third-party

dont_use_vistaprint

Stubod said:

..Investers in People???......

..or possibly India Industrial Production..????

From Google

An International Pension Plan (IPP) is a pension vehicle set up to accommodate a company's employees in many different jurisdictions. An International Savings Plan (ISP) is like an IPP but provides more flexibility and allows for early withdrawal of funds.

squirrelpie

Ah, an IPP rather than a IIP?