Can You Add To A DC Pension Fund?

Maclaurin

I have searched Google high and low for information on this question but found no mention of it anywhere so here goes ...

I have a company pension scheme from an employment of a number of years back, for 5 years service, so its only a small pension, and is made up of a DB and a DC component. The DC fund is currently worth around £18,000, and is invested until my normal retirement date of 2031. What I am wondering is - are you allowed to invest some cash into this DC fund, in order to boost the final pension it will provide. What pensions rules and regulations and tax implications apply? The amount I was thinking about was around £5000 initially. I am currently now self-employed and have no other pension scheme.

Thanks

xylophone

You might simply invest in a personal pension outside the old scheme if not permitted to use the old DC scheme.

http://www.cavendishonline.co.uk/pensions/stakeholder-and-personal-pensions/

https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief

kidmugsy

Maclaurin wrote: »

its only a small pension, and is made up of a DB and a DC component. The DC fund is currently worth around £18,000, and is invested until my normal retirement date of 2031. What I am wondering is - are you allowed to invest some cash into this DC fund

I imagine that legally you can do it - it's just a money purchase plan after all. The question is whether that provider permits it. I think you'll have to ask them.

atush

It depends on the pension- some you can others you can't. I am adding to an old one.

Call them, or open a personal pension if the costs are lower

jamesd

You'll need to ask. Nothing in law prevents it but they are not required to allow it. No charges are required by law for it but the pension might be set up to have some. They are required to allow you to transfer the money to another pension so that you can transfer then add to the new one if you want to keep things in one place.

Maclaurin

I am going to contact them and find out what my options are with them. However I may consider an additional pension scheme of some kind if there were advantages to that, as opposed to putting it into my existing company DC fund.

I am just wondering if there are any personal pensions schemes that would suit my needs - ie putting in say £5000 in as a lump sum initially, and then subsequently putting in lump sums in the future. A regular payment is not my prefered option because my income fluctuates a lot, and I can budget a lot better with lump sums than with regular payments.

Can anybody recommend some pension schemes that might be suitable for my needs - and what pitfalls should I watch out for?

Thanks