Pension on a bonus

Winnie21_2

Hello, I have received some great news that I am getting a bonus. The thing is they have asked me if I want to contribute to my pension from the bonus. I really need to get as much from this bonus as I can. So my question is should I pay into the pension or should I not bother and then the tax man takes more? I earn 51000 gross, so not sure how it will work. Any advice please?

El_Torro

It sounds like you will be paying 40% tax on this bonus. If you want the money now and don't mind taking the 40% hit then take it all. Otherwise put as much or as little as you want into your pension and you'll avoid paying the 40% on that amount.

atush

Seems to me if you will lose 40%, unless you need it for something, or dont have emergency cash fund and other investments (you should on that salary) then into the pension would be a great place for it?

Esp if you have any kids as you would lose CB.