Should You Move Your Money From an ISA to Pension?

[@stevem9754]

And I meant to add that, in my experience, the HMRC "top up" into your pension fund is not "immediate" - it seems to take about 2-3 months to appear in my Vanguard SIPP and that is only the 25% which comes from the standard tax rate top-up. As a higher rate tax payer, you then (later) have to claim back the extra tax relief from HMRC, which again is not immediate and takes more time. But I suppose over a number of years this doesn't make much difference apart from missing a few months growth at the start.

[@stevem9754]

Why do these scenarios only apply if the money you would transfer into your pension come from an existing ISA? Is the same not true if that £10k came from an existing bank savings account or other source - why only from an ISA?

[@DonnaTurner-q4o]

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[@johndinsdale1707]

I would cash in the ISA and salary sacrifice all but the £12k personal tax threshold. Save NI.

[@wl660]

8m00 apply. Reducing Personal Allowance means I pay into a SIPP instead of losing Personal Allowance. But my DB arrangements are such I may not be able to use any more TFLS on the way out. And I will be a higher tax payer in Retirement. So is it worth it? My only benefit appears to be saving the 40% PA penalty - especially since IHT changes mean my kids can’t benefit later either.

[@ianwall9152]

Do you have a spouse ? You could pay in for them

[@wl660]

@ could you elaborate? I assume I can’t get the full 40% added into her SIPP?