Paying into SIPP & claiming new style JSA?

[Jade]

Hi all,

Thanks to the great advice I got here,  earlier this year , I set up a SIPP in my name earlier in the year and am very happy with that.

My husband isn't working this tax year and has also claimed new style JSA for approx £1800 this tax year, which has now stopped.

We realised the other day we hadn't set up a SIPP for him. We gather he could contribute up to £2880 this year but wanted to double check before we did that it's okay to do so bearing in mind that he's claimed these benefits?

Thanks in advance.

[Manchester]

As far as I'm aware, JSA and your SIPP allowance are two completely different and unrelated things.  He's fine to contribute money towards his SIPP despite receiving JSA.

[Jade]

Thanks Manchester, appreciate you confirming that. Vanguard weren't sure & asked us to look into it.

On a related note i've just been discussing it with my husband further and we realised that it might not matter if we don't use his SIPP allowance anyway as we're putting approx £12k a year into my SIPP now but that's not my full salary which I believe I could contribute up to. I can't see any additional benefit in contributing to his SIPP if I've still got room in mine, unless we've missed something...?

[PhilB]

Assuming neither of you will hit the Lifetime Allowance and neither of you has higher rate taxed income to contribute or student loan repayments to dodge then there is no difference on the way in.  There might be differences on the way out though if one of you expects to have unused personal allowance in retirement.

[Jade]

Assuming neither of you will hit the Lifetime Allowance and neither of you has higher rate taxed income to contribute or student loan repayments to dodge then there is no difference on the way in.  There might be differences on the way out though if one of you expects to have unused personal allowance in retirement.

Thanks for this info PhilB.. We hadn't thought of that. We'll have a look at that when planning then.

[MarcherLady]

...and check when the SIPPs can be accessed! Whoever of you is oldest can get at their SIPP money first.

[Jade]

...and check when the SIPPs can be accessed! Whoever of you is oldest can get at their SIPP money first.

Very good point! Thank you. Hubby is five years older than me so that might maketa difference to our plans...