Moving to Canada few questions
Mar 22nd 2018 | 8:34 am
#17
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Joined: Sep 2017
Posts: 367
Re: Moving to Canada few questions
TFSA limit is $5,500 per year which is poor compared to the UK ISA limit of £20,000. If you are near retirement, I would fund as much (18% of your earned income) into a Retirement Savings Plan (RSP). For 2018, the maximum contribution to an RSP is $26,230. Details can be found at What's your RRSP contribution limit? Here's the max for this year
Otherwise, I would max your personal pension/SIPP in the UK before you leave. You can go back 4 years and add £40,000 gross for each year, assuming you have earned that amount of money. Tax relief is made at your prevailing rate, so for a basic rate tax payer you only need to add £30,000 and the government will add the rest.
e.g. Assume an average salary of £27,600 with no pension contributions made over the last 4 years, then you can add £27600*0.75*4= £82,800 into your pension and the government will contribute £27,600
Otherwise, I would max your personal pension/SIPP in the UK before you leave. You can go back 4 years and add £40,000 gross for each year, assuming you have earned that amount of money. Tax relief is made at your prevailing rate, so for a basic rate tax payer you only need to add £30,000 and the government will add the rest.
e.g. Assume an average salary of £27,600 with no pension contributions made over the last 4 years, then you can add £27600*0.75*4= £82,800 into your pension and the government will contribute £27,600
The key thing you said was "if you are near to retirement". This is very important to highlight and, in UK terms, one could add near to age 55. Simple reason being that if you fund your UK pension, that money is not accessible until 55.
Last edited by bxpuser053290; Mar 22nd 2018 at 8:35 am. Reason: Clarity
Mar 22nd 2018 | 6:12 pm
#18
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Joined: May 2010
Posts: 30
Re: Moving to Canada few questions
The key thing you said was "if you are near to retirement". This is very important to highlight and, in UK terms, one could add near to age 55. Simple reason being that if you fund your UK pension, that money is not accessible until 55.[/QUOTE]
I still have a long way to go till retirement so for now won’t be adding more money as such to my UK prnsion
I still have a long way to go till retirement so for now won’t be adding more money as such to my UK prnsion
