Prioritising Pension over ISA?
Posted: February 13th, 2018, 3:45 pm
Hi,
My wife is 56 this year and will be leaving her SIPP alone until she is 60, when she aims to retire.
At the moment, I focus on topping up her ISA and only put a token amount into the SIPP each month to help with charges, etc.
As she will probably be using UFPLS to access her pension one day, with the aim of getting it all out completely tax free, I'm questioning whether it would be better to throw the ISA allowance into the SIPP instead and get the 20% uplift from the government?
Am I missing something, it looks like a no-brainer to switch all payments into her SIPP, even if the government were to scrap the 25% tax free, so long as we stayed under her personal allowance in retirement, then we could empty it (one payment per year) and pay no tax at all?
regards,
Darka
My wife is 56 this year and will be leaving her SIPP alone until she is 60, when she aims to retire.
At the moment, I focus on topping up her ISA and only put a token amount into the SIPP each month to help with charges, etc.
As she will probably be using UFPLS to access her pension one day, with the aim of getting it all out completely tax free, I'm questioning whether it would be better to throw the ISA allowance into the SIPP instead and get the 20% uplift from the government?
Am I missing something, it looks like a no-brainer to switch all payments into her SIPP, even if the government were to scrap the 25% tax free, so long as we stayed under her personal allowance in retirement, then we could empty it (one payment per year) and pay no tax at all?
regards,
Darka