#638750
Postby PrefInvestor » January 6th, 2024, 11:18 pm
My understanding is that the maximum you can pay into a SIPP if you aren’t working is £2,880 a year - however old you are.
I know that some people religiously deposit their £2,880 a year to get the £720 tax contribution, and of course both parties in a couple can do that. But at age 75 that tax contribution ends I believe. And any withdrawal that you make is subject to tax at your marginal rate so that scheme is not a great money earner as far as I can see, I make it £5,760 per person for 10 years worth of contributions for a 20% tax payer. Enough for a nice holiday at age 75 I suppose !.
Of course you might do better than that if you invest within the SIPP. But I see that as offering no advantage over an ISA so I discount this feature personally.
And if you don’t start contributing to a SIPP until after you are retired I can’t see that you can build up a big enough pot to be useful for IHT purposes ?. However if you contribute while you are still working then large annual contributions are possible, so early planning and commitment would seem to be required to take maximum advantage.
But I can’t claim to be any kind of expert on SIPPs though I have have read up on the contribution rules, so DYOR etc.
ATB
Pref
Last edited by
PrefInvestor on January 6th, 2024, 11:28 pm, edited 1 time in total.