Live of savings and max pension ?
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kobie
Posts: 4 Newbie
in Cutting tax
hi
Need some advice.
I have received a windfall of about 100K after I have cleared my mortgage.
So wondering what to do...
Pension - I have a rerasonalble pension fund of 500K, aged 51 so I thought that I'd do this:
Ask my employer to max my pension contributions to 40K from my salary so reducing my NI and tax while I live off the 100K.
If my calculations are correct then my pension investment would be gross so no income tax plus there would be no NI.
I should be able to do this for 3 years and my intention is to retire at 60....
Does that plan seem reasonable ?
Or any other advice welcome.
cheers
K
Need some advice.
I have received a windfall of about 100K after I have cleared my mortgage.
So wondering what to do...
Pension - I have a rerasonalble pension fund of 500K, aged 51 so I thought that I'd do this:
Ask my employer to max my pension contributions to 40K from my salary so reducing my NI and tax while I live off the 100K.
If my calculations are correct then my pension investment would be gross so no income tax plus there would be no NI.
I should be able to do this for 3 years and my intention is to retire at 60....
Does that plan seem reasonable ?
Or any other advice welcome.
cheers
K
0
Comments
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Seems reasonable. In theory you could pay the £100 straight into your pension using the carry forward rules, but you would end up paying more tax and NI with this route. With your approach, you would be delaying your investment in the markets, but with Brexit on the way I think this is probably a sensible strategy.
Make sure you don't run your savings down to zero, you should keep an emergency fund in cash.The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.0 -
What is your salary?0
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Ask my employer to max my pension contributions to 40K from my salary so reducing my NI and tax while I live off the 100K.
In the latter case, you could pay into any pension, not just your employer's and get the tax benefit.0 -
Answer BoGof!Free the dunston one next time too.0
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