Any benefits to contributing to workplace pension past former LTA value?

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81976400#Comment_81976400

Small pots is well supported by some mainstream SIPP platforms who can assist in transfers to reorganise pots to artificially create some small pots for this purpose if required. Other exisitng admin and schemes may not want to be bothered with any of it in situ

AIUI for retail platforms, only HL will split off three small pots from a larger pension. Others will just handle one small pot that is stand alone/not split from a bigger one, and some do not have the facility for a withdrawal under the small pot rule at all.

I believe platforms used by advisors can also split off small pots from bigger ones.

Another 'method' is to start a new pension with a provider and add around £7K - get basic rate tax relief added, and then there is some room for growth. Withdraw it under the small pots rule before it gets too close to £10K.

kinger101

https://forums.moneysavingexpert.com/discussion/comment/81976782#Comment_81976782

Which is a tax advantage. HMRC hasn't challendged anyone yet as far as I'm aware but parliament intended the small pots rule to cover scenarios where these pots existed naturally.

Artificially creating the three pots is a different matter.

I'd say they'd likely win if they challlanged it.

mrklaw

what is the former LTA amount?

inwouldnhave thought it still makes sense past the 268k tax free amount proving your drawdown is still basic rate. So instead of 1.068m that might be closer to 1.25m?

id certainly be modelling how fast I could transfer out to ISA using both allowances if available, and during pre state pension period to maximise headroom to 50270. That’d probably be what defines my preferred roll off point for contributions (not a problem I’ll have to solve sadly)

BobbyFrench

Maybe think of your beneficiaries too. Might they enjoy the benefit of those increased contributions, if you were to die without accessing the whole pot, at a lower or zero rate of tax?

Does active membership of the pension scheme give you any other benefits? eg life cover, or increased allocation rates?