Charges £££ - FriendsLife - additional pension contribution... :(

Options
2»

Comments

  • newbiesaver55
    newbiesaver55 Posts: 80 Forumite
    Options
    Sandsy I'm struggling to get my head around that!

    Dunstoh that's interesting re the savings... and ditto the much cheaper pensions... ! I have £20k in the pension... maybe I should transfer it then??

    Does anyone know if I can attribute the single contribution to a previous tax year, please? Pretty confused re that...
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Name Dropper First Post First Anniversary
    Options
    No, you can only pay into a pension for the current tax year.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Name Dropper First Post First Anniversary
    Options
    bigadaj wrote: »
    No, you can only pay into a pension for the current tax year.

    Edit - you can use carry forward if your contribution exceeds £40000 is this the case?
  • coyrls
    coyrls Posts: 2,432 Forumite
    First Anniversary Name Dropper First Post
    Options
    bigadaj wrote: »
    Edit - you can use carry forward if your contribution exceeds £40000 is this the case?

    But the contribution is still for the current tax year and you must have enough relevant earnings in the current tax year to allow the extra contribution.
  • newbiesaver55
    newbiesaver55 Posts: 80 Forumite
    Options
    My extra contribution plus previous contributions matched my earnings for that year...
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Name Dropper First Post First Anniversary
    Options
    newbiesaver55 wrote: »
    My extra contribution plus previous contributions matched my earnings for that year...

    Yes, but you can't make any contribution after the end of that tax year.
  • newbiesaver55
    newbiesaver55 Posts: 80 Forumite
    Options
    Bigadj - do you mean I can't make further contributions to that pension - full-stop? I'm currently making a monthly contribution...
  • bowlhead99
    bowlhead99 Posts: 12,295 Forumite
    Name Dropper First Post First Anniversary Post of the Month
    edited 17 March 2017 at 9:05AM
    Options
    newbiesaver55 wrote: »
    Bigadj - do you mean I can't make further contributions to that pension - full-stop? I'm currently making a monthly contribution...
    You can't make any further contribution in the current tax year and say it is a contribution out of previous year earnings. If you wanted to contribute from a previous years earnings you would need to have done it in that previous year.

    You can contribute this year but it's counted against *this year's* earnings.
  • newbiesaver55
    newbiesaver55 Posts: 80 Forumite
    Options
    Thank you so much - trying to get my head around all of this. Why don't we learn about pensions at school?!
  • newbiesaver55
    newbiesaver55 Posts: 80 Forumite
    Options
    You can't make any further contribution in the current tax year and say it is a contribution out of previous year earnings. If you wanted to contribute from a previous years earnings you would need to have done it in that previous year.

    You can contribute this year but it's counted against *this year's* earnings.

    Hang on, so I've just re-read this and it's exactly what I've already explained above... isn't it? Unless you can spot that I've done something wrong? TIA
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards