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Extra pension contributions in year of retirement

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Comments

  • Linton
    Linton Posts: 18,539 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    So "The key difference was that the OP was failing to make all the pension contribution he/she could have made as he/she was including the employer's £550 against the relevent earnings limit."

    was incorrect?
    No, there are two separate limits with different rules. The one which was discussed first in this thread and is what your quoted paragraph was about relates to earned income. The other which was discussed most recently is £40K. The maximum you can put into your pensions in a year is the lower of the two limits.
  • eyeonretirement
    eyeonretirement Posts: 33 Forumite
    Eighth Anniversary 10 Posts Combo Breaker
    edited 24 May 2017 at 11:19AM
    I understand the two limits and the lower of the two being the one to use. It was if employer contributions ie salary sacrifice count towards that limit?
  • Linton
    Linton Posts: 18,539 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Hung up my suit!
    I understand the two limits and the lower of the two being the one to use. It was if employer contributions ie salary sacrifice count towards that limit?

    Employer contributions count towards the £40K limit but not the earned income limit.
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