I guess the pension income can not fund another pension(!?)...but can I use the other income streams to invest in a SIPP?

4 Feb, 2022

Question by Gary

Regarding SIPPs. What funds can be used to fund one? I’m 61.

My income streams are:
- workplace final salary pension
- rental income from a let property
- dividend from my own company (not currently trading).

I guess the pension income can not fund another pension(!?)...but can I use the other income streams to invest in a SIPP?

Answered by Tracey Che

Hi Gary,

You can contribute to pensions if you have relevant UK earnings - this means it must be earned income rather than other forms of income such as the rental, investment or pension income you have mentioned.

Hope this helps!

Tracey

Answered by

Tracey Che

Financial Planner

As a Financial Planner at Moore Kingston Smith, I provide holistic financial planning to high-net-worth individuals. I create bespoke plans for each client by working to understand their goals and aspirations, then model their specific circumstances using cashflow modelling. I believe this is invaluable for conveying technical planning strategies in an easy-to-understand format, so I can provide clients with peace of mind and the assurance that their finances will align with their goals for the future.

I was recently jointly awarded ‘The Worshipful Company of Insurers’ award for excellent performance in the completion of my Diploma in Financial Planning.

In my spare time, I like to host dinner parties and even managed to cook for 15 family members over Christmas. Having bought a property during lockdown, I’ve spent a lot of time doing DIY and making my own furniture. Although I love travelling, the pandemic has made me appreciate the beauty of the UK; I hiked Snowdon last summer with some friends and plan on completing the 3 peaks someday soon!

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