Pension Input Amount for a DB scheme, any ways to guesstimate?

stoozie1

This is so that we don't contribute too much to a SIPP.

The scheme don't release the pension input amount until the following November.

I found a calculator from Pruadvisor, but it was giving incorrect figures and says it is based on old data.

Does anyone have a method they use to not go over their Annual Allowance?

NoMore

https://www.pruadviser.co.uk/xpf_calculators/defined-benefit-pension-input-tool/

Was it this one, I've used it in the past and found it pretty accurate.

You could of course just wait until november to contribute the max amount you can to your pension

stoozie1

Thanks. Sorry, I meant they don't tell you until the November AFTER the year in question.

stoozie1

Yes that's the calculator, but I tried it with previous years I have the actual figures for, and am getting for e.g a negative (therefore zero) figure, whereas the real figures were c. £15000.

NoMore

I've done the same for my past figures and as I say its been pretty accurate for me.

Using option 1 accrual and service details. Are you using the correct pensionable salary? For me this is quite a bit different to my actual income as there is a fair chunk of mine that isn't penionable ( shift allowance and monthly bonus)

drumtochty

It is your job to look at these figures over the years combined with your salary at those times and estimate what you think it will be for the current year.


It is not the job of your employer to make that guess as employees would complain if it was wrong.



What they pay in over the year is not just their normal contribution but possible lump sum if their investments have under performed.


Your guess, I'm afraid and your issue if your guess is too low and you over pay into your SIPP.


Why should your employer advise a figure that may well be incorrect as they have up to 5 April in the tax year to adjust their payments.


Your additional payments into a SIPP are not their concern.

zagfles

See


https://www.pensionsadvisoryservice.org.uk/content/spotlights-files/uploads/How_to_test_pension_savings_against_AA_SPOT007_V1.7_Dec17_.pdf


ETA: MSE forum seems to mangle the link - remove spaces or %20 if it says not found.

tigerspill

stoozie1 wrote: »

This is so that we don't contribute too much to a SIPP.

The scheme don't release the pension input amount until the following November.

I found a calculator from Pruadvisor, but it was giving incorrect figures and says it is based on old data.

Does anyone have a method they use to not go over their Annual Allowance?

I always calculated as best I could. One of two things happens -
1. Under contribute - just carry this to the following year and contribute a bit more than the £40K allowance
2. Over contribute - I just paid the tax. At the end of the day this isn't additional tax - just delayed tax payment.
So no big deal either way.

Marcon

drumtochty wrote: »

What they pay in over the year is not just their normal contribution but possible lump sum if their investments have under performed.

Why should your employer advise a figure that may well be incorrect as they have up to 5 April in the tax year to adjust their payments.

Nothing to do with the employer - it is the trustees (or more likely the the third party administrators) who advise. For a DB scheme, the actual amount contributed has nothing to do with it; it is the benefit built up which counts. As for having 'up to 5 April to adjust their payments....', not so. They must stick to the schedule of contributions, which may or may not include recovery plan payments as well as regular payments.