pension pot 2031
its 2031---im 70(could work p/t)
investment i.s.a ---300k
its not huge but its best i can do with my income
mortgage--clear
+ state pension
whats best thing to do with lump sum isa?
thx
Report
Follow this topic
Q&A » Pensions
Retweet
Comments (
FacebookComments (6)
-
824 -
7
-
824
-
7
-
824MikeGG1 posted
That is a very large ISA pot for your income.
I think you should wait a while yet. Compulsory pensions are coming in. You should top up your taxable income in retirement to the over 65 personal allowance by extra pension contributions when it is clearer how much will be needed.
You can pay up to your total taxable income in pension contributions so you would be able to make up any shortfall quite quickly.
By topping up, you would get the 25% tax uplift on the fund and then be able to take 25% of the fund in tax-free cash and receive a tax-free pension. A fund of £1,000 would cost you £800 and you would receive £250 cash. Consequently, a net cost of £550 would give you £750 worth of pension.
Your main income in retirement would come from drawdown from the remaining ISA. That would of course be tax-free.
Mike
Posted on 02 December 2011 |
Love 0 loves
Report
-
7compound200 posted
thats if market returns are 10% every year
Posted on 02 December 2011 | Love 0 loves
Report
Post an answer
Sign in or register to post an answer.
Something you're dying to ask... or answer?
Register with lovemoney.com to start asking and answering questions on Q&A.
Get started nowSign in for a better Q&A
Registered already? Great! You can just sign in to ask and answer questions.
Sign in