Retiring

rowarta said:
may not be an issue, if you can just check your total pension value v the pension lifetime allowance position. anything over the allowance can be taxed at 55% so could null any tax benefit.
Click to expand...
Hi, no the value won’t be over the allowance.
 
I look at Martin Lewis website regularly and particularly the forum link below. I learned lots from this. Understanding the tax benefits with pensions can earn you a bit of dosh. For example, pensioners or those with no income could still pay £2,880 per annum into a pension and earn £720, a return of 25 per cent.


forums.moneysavingexpert.com

Pensions, annuities & retirement planning

For help with everything to do with pensions and retirement.
forums.moneysavingexpert.com forums.moneysavingexpert.com
 
Segga said:
Great thread this, I’m after some advice please. I’ve got 15 years to go until I want to retire. That ties in with paying the mortgage off and Claiming my final salary pension.
Change of circumstances shortly means I’m going to be about £700 a month better off shortly and I want to put it towards my retirement plan but I don’t know what to do with it??
Click to expand...
Can you put any more into your pension?
 
Segga said:
Great thread this, I’m after some advice please. I’ve got 15 years to go until I want to retire. That ties in with paying the mortgage off and Claiming my final salary pension.
Change of circumstances shortly means I’m going to be about £700 a month better off shortly and I want to put it towards my retirement plan but I don’t know what to do with it??
Click to expand...
Pretty sure you can hold a SIPP even if you have a final salary. The only real limitations are you can only put away 40k in any tax year into something which is a pension plan (so that includes any contributions to your final salary) and as others have said watch out for the lifetime limit.

The limit is currently around £1.077m and for the next few years will increase in line with CPI.

If you put it into a SIPP you should also get additional savings in income tax added, this is normally done automatically by the SIPP provider. So if you put in £100 and your income tax rate is 40% you should get an additional £40 added. There are limits and it does depend on how much you earn as a salary and how much income tax you have paid at each rate band.

You may be better putting extra however into your final salary, particular if they match it. But the SIPP would give you more flexibility if you want to retire earlier and delay taking your final salary.

The other thing to look at is your mortgage and if it's worthwhile paying that off early. It's likely to be your biggest single debt and paying it off early gives you security and saves you a lot in interest. Whilst the rates are good (like now) you would get a better return by investing, but in 10yrs time who's to say the interest rate won't be back up to 5 or even 10%.
 
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Segga said:
Great thread this, I’m after some advice please. I’ve got 15 years to go until I want to retire. That ties in with paying the mortgage off and Claiming my final salary pension.
Change of circumstances shortly means I’m going to be about £700 a month better off shortly and I want to put it towards my retirement plan but I don’t know what to do with it??
Click to expand...
If you have a works pension scheme using salary sacrifice, such that you save tax and NI then it's probably a no-brainer to just bung it all into the pension. Even if not salary sacrifice then put into pension for tax benefits.

Or you could put some into a stock and shares ISA for more flexibility. Or a SIPP. Look at Vanguard, Hargreaves and Landsdown or Fidelity for example
 
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