SIPP & Pension guidance - IM Private Clients

[anonymous-user]

leef44 said:

When the contributions are made into the pot, does the fund default to treasury deposits as a minimum risk fund and they you have the choice as to how you invest it?

If so then this could explain why the returns are so low after offsetting the management fees.

Thanks, I'll check. All I'm getting from the provider is the usual 'investments can go down as well as up and you may not get back as much as you invested'.

Interestingly, the statement at the end of last year showed a loss, we had a grumble at them and at the end of last month it showed a small gain!

We always knew that this would be a small pot, but I was hoping to be able to build a camper from the proceeds!

[mikeiow]

JulianPH said:

mikeiow said:

Jasey_ said:

To add to what Julian said when Mrs jasey wanted to take her 25% lump sum from her existing pension they didn't offer flexi drawdown so if you wanted to take the 25% from their pension but not take an annuity you would need to transfer somewhere else first. This was Prudential and they started giving us a load of old tosh about having to take advice and they couldn't help but knew someone who could for a fee.

Julian can't give advice but I can - contact Nik and he'll explain it all to you without obligation.

Getting money out of a pension that suits you rather than the pension company appears to be much harder than it should be.

That is *good* advice!
Individual pension schemes can and do have various limitations: you might be "allowed" to do something, but it doesn't mean your specific scheme will let you!!

Thanks Mike and Jasey (how are you doing guys - coming to Portimão?!)

<snip>

Sadly not - we have a LOT going on this year.....(2 months of Interrail coming up, then a couple of summer music festival weekends), & sadly can't put our bid in for a ticket to the Algarve Maybe 2024!

Hope to at least make one in the UK, somewhere sometime.....but checking the calendar, it could be slightly tricky.
I'm sure they will be a blast, as always!

[mattfuey]

Not sure if this is the right place for this or not, but I have an auto enrolment pension from a previous employer, which in nearly 7 years, has achieved annualised growth of <2%. As such the pot isn't massive, c.£15k.

So I'm looking to transfer this out in to a SIPP or another managed pension, but have no idea where to start with picking pension providers etc.

Is this something I'm best discussing with a FA or will they just push me to a product that someone they partner with provides?

Would be looking to continue contributions to the above pot too, not loads as have another employer pension which will be starting up as of next month, but wanted to treat this as a bit of a medium/hisk risk investment option.

Any thoughts welcomed

[markiii]

no need for an ifa, open up something with IM or Vanguard thats as simple or adventurous as your feeling and get it moved

[CarDoodle]

Sorry if the wrong place - but does anyone in here have experience deciphering Scottish Widows fee structure?

I am in an adventurous "Pension Investment Approach" which is 100% invested in their "Scottish Widows Pension Portfolio One" fund. Digging around on their site I have seen both 0.1% and 1.0% listed as the fund total cost (TACF).

What is unclear is whether being in their "Pension Investment Approach" brings more fees. From what I can tell from their various pamphlets the pension approach is basically ramping down the fund risk over time - not something I want to pay for (or indeed to happen)

Once I work out what I am being charged I can then set about moving away.

[Craikeybaby]

I am in the same boat, and have given up whenever I have tried to look at it...

[bentley01]

If I pay into a pension for my wife will I be able to claim tax relief. She doesn’t have a pension and doesn’t earn very much. Thanks

[mikeiow]

bentley01 said:

If I pay into a pension for my wife will I be able to claim tax relief. She doesn’t have a pension and doesn’t earn very much. Thanks

Well, you can take (I think) about a grand off your wife’s allowance to yours, if she isn’t working..lol
….but I am 99.999% sure you cannot claim tax relief on *her* pension.

My wife isn’t working, & for a few years we have been trickling £2,880 into a pension for her: the HMRC make it up to £3,600, so kind of a no-brainer…..but I could not claim tax relief (even when I was a 40% tax payer): it is her allowance & tax relief….

[Jasey_]

mikeiow said:

bentley01 said:

If I pay into a pension for my wife will I be able to claim tax relief. She doesn’t have a pension and doesn’t earn very much. Thanks

Well, you can take (I think) about a grand off your wife’s allowance to yours, if she isn’t working..lol
….but I am 99.999% sure you cannot claim tax relief on *her* pension.

My wife isn’t working, & for a few years we have been trickling £2,880 into a pension for her: the HMRC make it up to £3,600, so kind of a no-brainer…..but I could not claim tax relief (even when I was a 40% tax payer): it is her allowance & tax relief….

https://www.gov.uk/marriage-allowance

Some allowance can be transferred but only if you arent a high rate tax payer. And your wife can be earning but if she's earning less than her allowance its worth doing it.

And if you pay into her pension the tax relief will be added into it too. I think you can pay up to 100% of her earnings and it will be topped up with tax relief.

If you're a high rate tax payer might be worth topping up your own pension subject to various maximums etc.

Edited by Jasey_ on Thursday 23 February 07:42

[pingu393]

Jasey_ said:

And if you pay into her pension the tax relief will be added into it too. I think you can pay up to 100% of her earnings and it will be topped up with tax relief.

Edited by Jasey_ on Thursday 23 February 07:42

Remember that it will come from her tax allowance, not yours.

AFAIK, anyone can pay into anyone's pension, but there are gift allowance limits. I don't think there is an allowance limit for spouces, but there are for everyone else. Any tax relief added to the pensions will come from the pension holders tax allowance. Non-earners get a pension taxable allowance of £3600, which means they can invest £2880 and HMRC will add £720 to make it up to £3600.

If she isn't earning, I would also consider buying additional years for her state pension.

[Atlantis67]

My wife currently earns around 6k pa in employment income and 8k pa in dividends from her family’s business. As a result she uses her personal allowance and dividend allowance in order to pay no tax. Is she allowed to place 6k into a SIPP and claim basic rate tax relief or would it only be the lower amount that non-earners are allowed (£3.6k gross).

Many thanks!

Edited by Atlantis67 on Friday 24th February 22:22

[Jockman]

Atlantis67 said:

My wife currently earns around 6k pa in employment income and 8k pa in dividends from her family’s business. As a result she uses her personal allowance and dividend allowance in order to pay no tax. Is she allowed to place 6k into a SIPP and claim basic rate tax relief or would it only be the lower amount that non-earners are allowed (£3.6k gross).

Many thanks!

Edited by Atlantis67 on Friday 24th February 22:22

£6k. So £4.8k plus £1.2k tax relief.

Only 2 posts in 13 years is pretty amazing.

[Atlantis67]

Jockman said:

Atlantis67 said:

My wife currently earns around 6k pa in employment income and 8k pa in dividends from her family’s business. As a result she uses her personal allowance and dividend allowance in order to pay no tax. Is she allowed to place 6k into a SIPP and claim basic rate tax relief or would it only be the lower amount that non-earners are allowed (£3.6k gross).

Many thanks!

Edited by Atlantis67 on Friday 24th February 22:22

£6k. So £4.8k plus £1.2k tax relief.

Only 2 posts in 13 years is pretty amazing.

Thank you very much. Only just got back to this forum after using it to sell my Boxster a long time ago!

[Pistonpants]

Just trying to understand the pension allowance carry forward rules….

Say I paid in the following…..

22/23 - ?
21/22 - £40K
20/21 - £40K
19/20 - £40k
18/19 - £10K
17/18 - £10K
16/17 - £10K

Which statement is correct?

A. I can pay in a max of £40K in 22/23, because there is zero carry forward.

B. I can pay £130K max, 40K for 22/23, 90K carry forward because 30K of 19/20 can use 16/17 allowance, 30K of 20/21 can use 17/18 and 30K of 21/22 can be pushed to 18/19.

Thanks!

[dingg]

Unfortunately for you A, (I think)

Only the previous 3 tax years can be carried forward.

[leef44]

dingg said:

Unfortunately for you A, (I think)

Only the previous 3 tax years can be carried forward.

Yes this is correct. The contributions go against the current year's allowance first and then if there is left over from three years' ago, it would use that next.

[Mr Pointy]

Pistonpants said:

Just trying to understand the pension allowance carry forward rules….

Say I paid in the following…..

22/23 - ?
21/22 - £40K
20/21 - £40K
19/20 - £40k
18/19 - £10K
17/18 - £10K
16/17 - £10K

Which statement is correct?

A. I can pay in a max of £40K in 22/23, because there is zero carry forward.

B. I can pay £130K max, 40K for 22/23, 90K carry forward because 30K of 19/20 can use 16/17 allowance, 30K of 20/21 can use 17/18 and 30K of 21/22 can be pushed to 18/19.

A is the answer. You have to use up the current year's allowance first & then if you want to you can start using up any cary forward from the previous three years. In 19/20 you could have contributed £40k + £90k, in 20/21 it would have been £40k + £60k, in 21/22 it would have been £40k + £30k. After that it's £40k only.

[Pistonpants]

Thanks all

[SpunkyGlory]

I think I know the answer to this one (or at least the sticking point) but I'll ask anyway.

Early 30s with a DB pension from a previous employer, a current employer DC pension and a SIPP. I'd like to invest in some commercial property and understand the process of using a SIPP to do this. My question is, how (un)likely am I going to be able to transfer my DB pension to a SIPP to increase the available purchase amount, given that the DB CETV is c. 10 x value of SIPP and therefore has more opportunity.

[mjb1]

Jockman said:

Atlantis67 said:

My wife currently earns around 6k pa in employment income and 8k pa in dividends from her family’s business. As a result she uses her personal allowance and dividend allowance in order to pay no tax. Is she allowed to place 6k into a SIPP and claim basic rate tax relief or would it only be the lower amount that non-earners are allowed (£3.6k gross).

Many thanks!

Edited by Atlantis67 on Friday 24th February 22:22

£6k. So £4.8k plus £1.2k tax relief.

Only 2 posts in 13 years is pretty amazing.

This is useful to know - so you can effectively claim more in tax relief than you've paid in income tax (i.e. from the personal allowance range)?

Also, what interest rate does IM currently pay on cash held within a SIPP (or an ISA for that matter)?