Questions Asked

• Question 1
  Dear Pete & Roger. I'm a long-time listener and love the podcast, especially more so since Roger joined back in season 21.

  I'm an additional rate taxpayer with income below the threshold for the tapered annual allowance. I have been contributing £45k to my workplace defined contribution pension via salary sacrifice for the last couple of years, and my effective tax relief rate on contributions is 47%.

  This coming April (2025) I will turn 55 and will be able to access my pension. I am considering increasing my salary sacrifice contributions by £14,000 per year and funding this by taking just under £7,500 PCLS (i.e. tax-free cash) from my pension.

  Having watched the MeaningfulMoney video on Tax-Free Cash Recycling and checked the HMRC web site, I know this is not considered tax-free cash recycling because the PCLS withdrawals will be below £7,500 per year. However, I don't know if sacrificing £7,500 of tax-free cash in return for £14,000 of new contributions will have any unintended consequences.

  In retirement I plan to withdraw money via UFPLS and use tax-free cash to minimise my effective tax rate and have no plans to use it to fund large purchases.

  Have I missed anything?
  Simon.

• Question 2
  Hi Pete,

  I hope you're doing well! I’ve been really enjoying the Meaningful Money podcast and had a question I’d love to hear your thoughts on the show:

  With the long waiting times on the NHS, is having private health insurance a new ‘must have' protection or still a ‘nice to have'?

  Thanks so much for your wisdom! And keep up the great work on the podcast! 🙂

  Best regards, Chloe
   

• Question 3
  Hi guys – thanks for all you do with this podcast. I've been incredibly fortunate to find you in my 20's and absorb so much useful knowledge.

  My question is surrounding LISA's. My fiancé and I currently live separately but we're looking to move in together ahead of our wedding this summer. She owns her own home and I currently rent so we'll be moving into her house. Our plan is to live for a couple of years in her (or soon to be our) house as she managed to secure a favourable rate that will help us to save together for our next home. The majority of my current house deposit (around £35k) is in a LISA, however in the last year or so I've quickly realised that our next home together will probably sit above the £450k limit that LISA's allow. Given that we live in a pretty expensive area and want to stay here, is there anything you would suggest? We've thought about me ‘buying in' to her current house but we don't want to remortgage and lose the favourable fixed term. Any ideas?

  Cheers, Joe

• Question 4
  Hi Butch & Sundance, my question is about SIPPs & ISAs and tax implications when used with State Pension and a Defined Benefit Pension.

  I’m planning to retire 7 years before state retirement age (67) and plan to use a DB pension and SIPP in those 7 years. The annual income from the DB pension will exceed the current basic rate income tax annual allowance (£12,570) and withdrawals from the SIPP outside of the tax-free lump-sum, would all incur basic rate income tax. I would like to keep investments that continue to grow, but with the removal of some IHT benefits within a SIPP, is it now worth withdrawing more than I need each year and moving the SIPP investments to a Stocks & Shares ISA over the next 7 years and therefore reduce tax paid over the following 20-30 years from the age of 67? Or am I making more of minor issue than is needed?

  Keep up the excellent work.

  Jack

• Question 5
  Dear Pete & Rog,

  I have a pensions Annual Allowance query, the answer to which might be of interest to the MeMo community.

  A relative uses salary sacrifice for her occupational DC pension scheme, and the employer contributes £40k, annually, into her plan.

  Normally, she doesn’t make any personal contributions into any pension schemes, but after receiving a windfall, she is minded to do so via a newly opened SIPP — she has rejected the option of increasing her salary sacrifice amount, and wishes to contribute part of her windfall separately from her occupational DC scheme.

  Her (post-sacrifice) relevant UK earnings are £35k, so she is planning to contribute £20k gross into the SIPP (£16k net); in order to consume the full Annual Allowance limit of £60k [£40k (employer) + £20k (personal)].

  The SIPP provider has advised her that she can actually contribute the whole £35k (gross) by using ‘carry forward’; as she hasn’t made any personal contributions in previous years [she’s only ever used salary sacrifice].

  Is the SIPP provider correct?

  Kind Regards,

  James

• Question 6
  Hi Pete and Roger

  I have a question about pensions for low earners.

  I have been listening to your show for the past year and loved the simplify and OS series, with your helpful explanations I have managed to get my self employed husband to increase his pension contributions, built up 6 months of emergency funds and have opened our first stocks and shares isa for long term savings.

  My question is about my pension contributions. I have about 13 years in an NHS pension from before I had children. For the past 8 years ( since the children were born) I have worked very part time or not at all so have not really made much in the way of pension contributions.

  I am currently 45 and I work seasonally for 4 months of the year. We live comfortably on my husband’s income and as mine is irregular income it is not allocated to specific spending.

  My plan this year was to try and save all my income (about £7000) and contribute to a personal pension (a SIPP?) to catch up on my own pension contributions (I do have an employer one but it’s very basic).

  My question is: if I pay into a personal pension will I still get tax relief added? As my earnings are below the personal allowance I don’t pay income tax. I can only find information on the £2880 for none earners or employee pensions.

  Also how much of my income can I put in a pension? I.e. If I do get tax relief can I only put in 80% of my earnings?  Do I also need to subtract my work pension contributions?

  Thank you for all your amazing work
  Best wishes, Lindsey

Send Us Your Listener Question

We’re going to spin out the listener questions into a separate Q&A show which we’ll drop into the feed every 2-3 weeks or so. These will be in addition to the main feed, most likely, but they’re easier for us to produce because they require less writing! Send your questions to hello@meaningfulmoney.tv Subject line: Podcast Question

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