Cash ISA to SIPP?

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pantaiema
pantaiema Posts: 183 Forumite
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in Pensions, annuities & retirement planning
I have accumulated about 40k in my cash paying interest of 2%+.
I am already 55yo but still expect to work until my NPA which is 67yo. When I got retired I will still pay basic interest rate.

Is there any disadvantages if I move my cash ISA INTO SIPP?.
Could I put my cash ISA to Vanguard life strategy SIPP (if any?)
I understand that my SIPP will get top up by 20%. This is similar rate I will be paying when I got retired anyway? Am I am correct?

Thank
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  • dunstonh
    dunstonh Posts: 116,387 Forumite
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    Is there any disadvantages if I move my cash ISA INTO SIPP?.

    Accessibility will be slower. But that is mainly due to the switch from cash to investments. It is still possible to get access to money within an hour or two with the right provider and a bit of advance preparation (ie. after you have sold the funds and wait the 3-4 days for settlement). Whereas cash ISA is normally available there and then.
    Could I put my cash ISA to Vanguard life strategy SIPP (if any?)

    There is no such product. Vanguard operate a range of funds using the lifetstrategy name but a SIPP.
    I understand that my SIPP will get top up by 20%. This is similar rate I will be paying when I got retired anyway? Am I am correct?

    you can only pay in what you earn or £3600, whichever is higher (subject to an annual limit - avoiding caveats for simplicity at this stage ). What earnings do you have? (probably none if you are retired). If none, then you can only pay £3600 into a pension.

    You can still use the S&S ISA though.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
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    To be clear it's £3,600 per tax year, not £3,600 in totality.

    But as you would only be paying £2,880 yourself it would take quite some time to drop the full £40k into a SIPP.

    Obviously different if you have earnings and can pay more in each tax year.
  • mgdavid
    mgdavid Posts: 6,705 Forumite
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    No, the OP said
    pantaiema wrote: »
    ....... I am already 55yo but still expect to work until my NPA which is 67yo. ..........
    The questions that get the best answers are the questions that give most detail....
  • pantaiema
    pantaiema Posts: 183 Forumite
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    What about.
    - I put £3000 each year to SIIP
    - About £20. 000 go to S&S Isa
    - £17.000 go to flexible cash ISA (e. g combine with higher interest current account) and go back to flexible ISA before tax year is ending to maintain ISA status. Ready to be dropped to SIIP?.

    What is the disadvantages of doing this?
    Thanks again for your time.
  • Brynsam
    Brynsam Posts: 3,643 Forumite
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    pantaiema wrote: »
    What about.
    - I put £3000 each year to SIIP
    - About £20. 000 go to S&S Isa
    - £17.000 go to flexible cash ISA (e. g combine with higher interest current account) and go back to flexible ISA before tax year is ending to maintain ISA status. Ready to be dropped to SIIP?.

    What is the disadvantages of doing this?
    Thanks again for your time.

    Can't work out what you are trying to achieve. Are you saying you can't afford to fund both a SIPP and an ISA?
  • pantaiema
    pantaiema Posts: 183 Forumite
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    Brynsam wrote: »
    Can't work out what you are trying to achieve. Are you saying you can't afford to fund both a SIPP and an ISA?

    Already have about 40k cash ISA. But I understand I could only put £2880 a year into SIIP. SO the rest will need to go somewhere while waiting allocation to SIIP.
  • Brynsam
    Brynsam Posts: 3,643 Forumite
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    pantaiema wrote: »
    Already have about 40k cash ISA. But I understand I could only put £2880 a year into SIIP. SO the rest will need to go somewhere while waiting allocation to SIIP.

    You say you expect to work to 67. Are you working at the moment and if so, how much are you earning?
  • xylophone
    xylophone Posts: 44,427 Forumite
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    What are your "relevant earnings"?

    Are you already contributing to a workplace pension? If not, why not?

    https://www.rossmartin.co.uk/private-client-a-estate-planning/income-losses-claims-reliefs/1034-relevant-earnings-for-pensions-purposes
  • pantaiema
    pantaiema Posts: 183 Forumite
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    Brynsam wrote: »
    You say you expect to work to 67. Are you working at the moment and if so, how much are you earning?
    xylophone wrote: »
    What are your "relevant earnings"?

    Are you already contributing to a workplace pension? If not, why not?

    https://www.rossmartin.co.uk/private-client-a-estate-planning/income-losses-claims-reliefs/1034-relevant-earnings-for-pensions-purposes

    Yes. I am working at the moment and I am earning £55,000. I am still want to work until my NPA 67.

    I have A DB pension in the workplace pension and have maximised employer contribution. I have also top up my AVC of £4500 a year.
  • Brynsam
    Brynsam Posts: 3,643 Forumite
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    edited 10 March 2018 at 8:12PM
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    pantaiema wrote: »
    Yes. I am working at the moment and I am earning £55,000. I am still want to work until my NPA 67.

    I have A DB pension in the workplace pension and have maximised employer contribution. I have also top up my AVC of £4500 a year.

    You can't 'maximise employer contribution' in a DB scheme - what the employer contributes is determined at each triennial valuation. As for topping up your AVC - do you mean you top it up BY (not OF) £4,500 a year?

    Given your earnings of £55,000 you appear to have scope to pay more than £2,800 a year to a SIPP without having Annual Allowance issues. Why do you think you are limited to £2,800?
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