Paying £2880 into pension when retired

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  • Mnd
    Mnd Posts: 1,699
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    Depends on the conditions on the provider..I think hargreaves lansdown req 1000.
    But your theory seems sound, and you can do this until you ar 75
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
  • xylophone wrote: »
    You intend to start contributions from 6/4/2018?

    Why not a contribution of £240 a month starting on 6 April 2018 and taken each 6th month thereafter?

    You will then have contributed £2880 in the tax year and the provider will claim the tax relief of £720 over the year making a total of £3600.

    https://www.ft.com/content/db749266-1ea0-11e7-b7d3-163f5a7f229c

    Would you still be able to withdraw £3600 in the tax year 2018/19? I'll be in my 3rd year of doing this, I leave £1000 in my HL account at all times. Thanks
  • Sun-Is-Fun
    Sun-Is-Fun Posts: 242
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    edited 16 November 2017 at 12:35PM
    Bazzh wrote: »
    Read through the posts regarding this subject. I am 72 retired and have a total income of £18500 gross, made up of state and company pensions. Am I right to assume I can pay £2880 into a Sipp and claim tax relief of £720 and withdraw £3550 ( £50 left in to keep account open) for the next 3 years.
    Many thanks

    Maybe more knowledgeable people will put me right, but in your situation, will you gain a lot as you would be already over the tax threshold (£11,500) with your existing pensions, so the 720 tax relief you get added to your £2880, would get taken away again when you withdraw it? You will gain a bit by being able to take out the first 25% tax free, however.
  • Mnd
    Mnd Posts: 1,699
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    I think it's about £15 a month benefit to basic rate tax payer
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
  • mark1959
    mark1959 Posts: 553
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    Bazzh wrote: »
    Read through the posts regarding this subject. I am 72 retired and have a total income of £18500 gross, made up of state and company pensions. Am I right to assume I can pay £2880 into a Sipp and claim tax relief of £720 and withdraw £3550 ( £50 left in to keep account open) for the next 3 years.
    Many thanks
    Yes, as has been alluded to earlier you would pay 20% tax on 75% of the £3600, 0.2 x £2700 = £540, say £40 pension providers charges = £3020, £140 made.
  • Crabby
    Crabby Posts: 858
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    Hey ho, I'm a bit late finding out about this, but I'd like a bit of advice.
    I'm a 61 year old non tax payer, I doubt I will pay income tax until I receive my state pension.
    I've started a sipp with Hargreaves Lansdown, deposited £2880 and received the £720 top up so have the £3600. I've got my personal illustration and completed the risk assessment, I'm now waiting for the application.

    Now the question.
    What's the best way to proceed?
    Is it take the £900, then take £1700 in increments over the remaining months till April ( leaving £1000 in to keep the HL account open). Then pay in £240 a month from April and withdraw £240 a month.
    Or pay in £2880 next April and withdraw £3600 0ver the 12 months after the £900 has been added.
    Or is it something completely different?
    Winner winner, Chicken dinner.
  • Mnd
    Mnd Posts: 1,699
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    If you have it in cash, then yiu may as well take it out and put it in a interst paying account,
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
  • Crabby
    Crabby Posts: 858
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    Ok, thanks.
    Winner winner, Chicken dinner.
  • Audaxer
    Audaxer Posts: 3,505
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    Crabby wrote: »
    Hey ho, I'm a bit late finding out about this, but I'd like a bit of advice.
    I'm a 61 year old non tax payer, I doubt I will pay income tax until I receive my state pension.
    I've started a sipp with Hargreaves Lansdown, deposited £2880 and received the £720 top up so have the £3600. I've got my personal illustration and completed the risk assessment, I'm now waiting for the application.
    I've also just opened a SIPP with HL with the same amount. I didn't bother too much with the personal illustration as I'm just leaving it in cash until I decide where to invest it. I didn't see a risk assessment. What application are you waiting for?
  • Hi, I seem to have gotten somewhat confused as to how these sipp's work. My wife is now 65 with only a state pension (retired at 62) as income £6984 pa. I opened up a H&L sipp in Feb 2016 and have now added 3 x £2880 the cash balance (including the tax rebate) is now £10,800. My confusion arises as some months ago I spoke to H&L about withdrawing some funds without putting the wife into a tax paying position i.e. above her tax free income but still putting in the £2880 every year until she is 75
    As I understood it, once we start to draw from this sipp it goes into "drawdown" and no more deposits into the account can be made? Rather a new sipp would have to be opened. Have I got this correct? Can anyone suggest the best way to retain the yearly £2880 investment by myself and draw funds also whilst taking advantage of the tax rebates. Thankyou
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