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    • francisbowles
    • By francisbowles 17th Mar 17, 11:09 AM
    • 2Posts
    • 0Thanks
    Recently retired and looking to open a cash sip.
    • #1
    • 17th Mar 17, 11:09 AM
    Recently retired and looking to open a cash sip. 17th Mar 17 at 11:09 AM
    Hi Guys

    New to this forum and my first thread.

    I am 59 years old and took voluntary redundancy in September 2016. I elected not to invest any of this in my final salary pension which had been fully crystalised for over four years.

    I had commenced drawing 40% of my pension, including 25% of this as a tax free lump sum, in May 2016 (and reduced my hours). At this point I didn't know there was going to be a voluntary severance.

    I have been advised that I have gone over the annual allowance for the year 2016/17 but have allowance remaining from the previous years. I have calculated on that I have 19,000 of unused allowance this year.

    I am currently planning to take the remaining 60% of my pension, including 25% of this as a tax free lump sum, in August 2017 when I will be 60 but I can defer this.

    So firstly, am I eligible to open a SIP with 2880 this tax year and gain tax relief on 25% of 3600 next.

    Secondly, can I benefit from paying in a larger amount this tax year and withdrawing next as I was employed for six months.

    I had sufficient savings before the severance to demonstrate that I am not recycling pension money.

    I am happy to provide all necessary figures if needed to calculate whether there may be eligibility.

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