A few questions

ValarMorghulis

Trying to start retirement planning, my husband will receive a forces pension at 60 in 8 years, but plans to work until 63 or so, he has recently become a 40% tax payer, only just as he pays 10% of his salary under salary sacrifice, my first query is whether starting to get his forces pension will trigger the lower limit for pension contributions? He wants to up his contributions by his pension amount ideally, his employers contribute 9% too so it would be at least £16k . If it does trigger the £10k limit, could I put his pension into my SIPP to get 20% tax relief? I'm not planning to be working by then.

Also, how much 40% tax does he have to pay before he can claim extra tax relief on his pension contributions?
At the moment he stands to earn @ £ 48k after SS for 16/17.
Thanks in advance :beer:

bigadaj

Taking a defined benefit pension shouldn't trigger the reduction in the contribution limits.

You could contribute into your pension, and in some ways it is advisable to split between couples, but if you're not working you'll be limited to the gross value of £3600.

In terms of 40% tax relief then it's always best to work from gross earnings, so take his gross earnings and deduct the higher rate limit, and the difference will be what needs to be contributed to maximise higher rate tax relief.