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  • FIRST POST
    • RomfordNavy
    • By RomfordNavy 16th Apr 19, 11:11 AM
    • 246Posts
    • 20Thanks
    RomfordNavy
    SIPP for Elderly person
    • #1
    • 16th Apr 19, 11:11 AM
    SIPP for Elderly person 16th Apr 19 at 11:11 AM
    Asking the question on behalf of an elderly person who for the first time in many years has just started paying tax, slightly under 1500 a year. Question is should she open a SIPP to pay into in-order to dissipate that tax liability or is the cost of doing so more than the saving available.

    Personally I have little knowledge about SIPPs as I don't have one, I have chosen to use ISAs instead hence looking for advice from the forum.

    Thanks,
Page 1
    • BoGoF
    • By BoGoF 16th Apr 19, 11:16 AM
    • 4,230 Posts
    • 3,764 Thanks
    BoGoF
    • #2
    • 16th Apr 19, 11:16 AM
    • #2
    • 16th Apr 19, 11:16 AM
    Paying into a SIPP won't reduce their tax liability unless they are a 40% taxpayer which sounds unlikely if the tax is only 1500
    • bowlhead99
    • By bowlhead99 16th Apr 19, 11:20 AM
    • 8,605 Posts
    • 15,745 Thanks
    bowlhead99
    • #3
    • 16th Apr 19, 11:20 AM
    • #3
    • 16th Apr 19, 11:20 AM
    How old is 'elderly'? Generally only youngsters under 75 will benefit from being able to pay into a pension.

    And what are they paying tax on - employment or self employed business income (which could be put into a pension to avoid or defer paying tax on it), or savings/investment /pension income (which could not be put into a pension, other than the 3600 gross contributions which all of us under 75 can make)?
    • RomfordNavy
    • By RomfordNavy 16th Apr 19, 3:01 PM
    • 246 Posts
    • 20 Thanks
    RomfordNavy
    • #4
    • 16th Apr 19, 3:01 PM
    • #4
    • 16th Apr 19, 3:01 PM
    How old is 'elderly'? Generally only youngsters under 75 will benefit from being able to pay into a pension.

    And what are they paying tax on - employment or self employed business income (which could be put into a pension to avoid or defer paying tax on it), or savings/investment /pension income (which could not be put into a pension, other than the 3600 gross contributions which all of us under 75 can make)?
    Originally posted by bowlhead99
    Elderly = nearly 90

    Income is Government Pension + deceased husbands Company Pension + Government 'Attendance Allowance'. Lower rate tax band, but now that her Married Couples Allowance has been taken away she is a bit over the tax allowance.
    • AnotherJoe
    • By AnotherJoe 16th Apr 19, 3:26 PM
    • 13,480 Posts
    • 15,937 Thanks
    AnotherJoe
    • #5
    • 16th Apr 19, 3:26 PM
    • #5
    • 16th Apr 19, 3:26 PM
    They are too old. 75 is the cut off point.
    • menziesthefish
    • By menziesthefish 16th Apr 19, 3:26 PM
    • 14 Posts
    • 9 Thanks
    menziesthefish
    • #6
    • 16th Apr 19, 3:26 PM
    • #6
    • 16th Apr 19, 3:26 PM
    Elderly = nearly 90
    At this age the lady would not receive tax relief on a personal pension contribution, so there would be no immediate tax benefit in her paying into a SIPP - certainly not one that would reduce her income tax bill.
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