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    • BBH123
    • By BBH123 18th Apr 17, 7:14 PM
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    BBH123
    What is the maximum age someone can pay into a personal pension please
    • #1
    • 18th Apr 17, 7:14 PM
    What is the maximum age someone can pay into a personal pension please 18th Apr 17 at 7:14 PM
    My stepdad is still working at 72 as he loves his job, he plans to work as long as he can and would like to start saving his income to make the best use of any tax benefits .

    He has pensions from previous employment but nothing with this current company .
Page 1
    • newatc
    • By newatc 18th Apr 17, 8:01 PM
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    newatc
    • #2
    • 18th Apr 17, 8:01 PM
    • #2
    • 18th Apr 17, 8:01 PM
    I don't think there is an age limit for paying into your pension but the associated tax benefits will end when you stepdad reaches 75.
    • missile
    • By missile 18th Apr 17, 11:30 PM
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    missile
    • #3
    • 18th Apr 17, 11:30 PM
    • #3
    • 18th Apr 17, 11:30 PM
    At 72, is there any point in paying more into a private pension?

    I feel sure his personal + state pension income would already exceed his personal allowance(?). If so he would be increasing his tax liability for when he eventually does retire.
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
    Ride hard or stay home
    • LHW99
    • By LHW99 19th Apr 17, 11:11 AM
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    LHW99
    • #4
    • 19th Apr 17, 11:11 AM
    • #4
    • 19th Apr 17, 11:11 AM
    Perhaps if he would get payments into any pension by his employer, that would be worthwhile. At 72 he wouldn't come under autoenrollment, but could probably opt in. I believe 75 used to be the age at which you couldn't get tax relief and / or pay in to a pension.
    Alternatively, if he has spare income, he could use cash ISA's, which would let him make withdrawals tax-free. S&S ISA's might not be suitable at 72, unless he is already an experienced investor, and wouldn't need the money for 5 - 10 years.
    • dunstonh
    • By dunstonh 19th Apr 17, 11:19 AM
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    dunstonh
    • #5
    • 19th Apr 17, 11:19 AM
    • #5
    • 19th Apr 17, 11:19 AM
    At 72, is there any point in paying more into a private pension?
    yes. If that tax wrapper offers the best option for the person.


    I feel sure his personal + state pension income would already exceed his personal allowance(?). If so he would be increasing his tax liability for when he eventually does retire.
    He would be reducing his tax liability with the pension. Tax relief going in. Tax free growth. Outside of the estate. And if he chooses to draw on it (which you dont have to), then only 75% of it is subject to income tax.

    Before 75 is the cut off for contributions.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • Triumph13
    • By Triumph13 19th Apr 17, 5:18 PM
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    Triumph13
    • #6
    • 19th Apr 17, 5:18 PM
    • #6
    • 19th Apr 17, 5:18 PM
    Obvious question, but is he deferring his state pension? If not then doing that would save paying tax on it now whilst increasing it by a very respectable 10.4% per year deferred.
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