Part Time - Additional Pension Contribution?

spartacus173500

Partenr works for Local Authority Part Time and earns £6,761 per annum, and pays £315 as Pension Contribution into LGPS per annum, and pays no tax or NI.

What is maximum tax efficient Pension Contribution?
£2,880 nett, £3,600 gross, as non-taxpayer, or £6,761 - £315 = £6,446 as Maximum Earnings?

Can contributions be increased by 'carry back' as uncontirbuted in previous years?

She is looking at Personal/Stakeholder Pension to enable withdrawal in 5 years time at 60, as Normal Retirment now 66.
Suggestions for provider?

kidmugsy

spartacus173500 wrote: »

Partenr works for Local Authority Part Time and earns £6,761 per annum, and pays £315 as Pension Contribution into LGPS per annum, and pays no tax or NI.

What is maximum tax efficient Pension Contribution?
£2,880 nett, £3,600 gross, as non-taxpayer, or £6,761 - £315 = £6,446 as Maximum Earnings?

£6,761 - £315 = £6,446 as gross contribution. You multiply by 0.8 to work out the net contribution; the pension provider reclaims the other bit from HMRC and adds it to the "pot".

spartacus173500 wrote: »

Can contributions be increased by 'carry back' as uncontirbuted in previous years?

No; there used to be such a system years ago, but it was scrapped (by Brown, I think).

spartacus173500 wrote: »

She is looking at Personal/Stakeholder Pension to enable withdrawal in 5 years time at 60, as Normal Retirment now 66.
Suggestions for provider?

People around here think well of Cavendish Online. Lots of people are fans of Hargreaves Lansdown for SIPPs of modest size: that includes me. Their charges for the new flexidrawdown pensions look very good. I'm also considering AJBell Youinvest, with a view to my family inheriting my pension and keeping it for some time, i.e. for a period of more than five years.

It might pay to think what she'd like to invest in. For a period as short as five years it may pay just to keep it in cash, in whole or in part. That's free of charges at HL (and perhaps the others?) but of course you get no or negligible interest.