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Not earning 63 year old
I am not working and have a small Standard Life pension pot. I withdrew 25% tax free last year, I am leaving the rest of the money 13k invested. Can I add £2880 to the pot each year and be given tax relief up to £3600 even though I have no earnings? Thank you
Comments
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Yes you can.
If you're not using your personal allowance some people would suggest you do that (by eg drawing the taxable bit of the pension) before you start to receive the state pension.
3 -
Be aware that once you withdraw taxable money from your pension (as opposed to the 25% tax free portion) you trigger the MPAA and are restricted to paying in a maximum of £10,000 per year in future, even if you start working again.
Not likely to be an issue if you don't plan to return to work, but something to be aware of just in case.
3 -
Be aware that once you withdraw taxable money from your pension (as opposed to the 25% tax free portion) you trigger the MPAA and are restricted to paying in a maximum of £10,000 per year in future, even if you start working again.
…the exceptions to that being the immediate purchase of a lifetime annuity, or using the 'small pots' rule, neither of which triggers the MPAA.
All about small pots (which won't apply to OP's SL pot, given they've already taken money from it and it was in any case more than £10K): https://www.litrg.org.uk/pensions/pension-withdrawals/small-pensions
Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!3
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