Additional pension contributions and tax relief?

zagfles

So a £25k gross contribution then? £20k plus £5k tax relief.

Assuming a RAS scheme, it will be:
30000-125*12-25000 = 3500 gross left, so she could pay in £2800 net.

dave_hendy

zagfles wrote: »

So a £25k gross contribution then? £20k plus £5k tax relief. = correct

Assuming a RAS scheme, it will be:
30000-125*12-25000 = 3500 gross left, so she could pay in £2800 net. = not sure on the scheme, all I know is she pays £100 and her employer pays £75, her pension statement then shows she gets £25 from the government

Answers above

LadyCoconut

Somewhat related to this question.

I get an annual work bonus which be up to £12K (in reality it'll probably be more £5-7K).

I have not reached my annual tax relief target in my pension. Does it make sense to just top up my pension pot or top up my ISA (stocks and shares ISA - medium risk). Just wondering what I need to consider.

Also I have another £8K coming in August from a workplace savings scheme.

Thank you.

zagfles

dave_hendy wrote: »

Answers above

So it's a RAS scheme, so as above.

zagfles

LadyCoconut wrote: »

Somewhat related to this question.

I get an annual work bonus which be up to £12K (in reality it'll probably be more £5-7K).

I have not reached my annual tax relief target in my pension. Does it make sense to just top up my pension pot or top up my ISA (stocks and shares ISA - medium risk).

Thank you.

Far to little info to give a sensible answer, but in general if you're saving for old age it's usually better to use a pension. But the money is tied up till you're 55 (or maybe 57 later this decade if the govt raise the age), so if you might need it before then, ISA might be worth considering. There's an ISA vs pensions thread here.

LadyCoconut

zagfles wrote: »

Far to little info to give a sensible answer, but in general if you're saving for old age it's usually better to use a pension. But the money is tied up till you're 55 (or maybe 57 later this decade if the govt raise the age), so if you might need it before then, ISA might be worth considering. There's an ISA vs pensions thread here.

I realise my details are a little short but I could live without the money just fine.

Oh i didn't realise there was a specific thread.

I'll take a gander

zagfles

LadyCoconut wrote: »

I realise my details are a little short but I could live without the money just fine.

Oh i didn't realise there was a specific thread.

I'll take a gander

Actually having just had a scan of it (linked from the top sticky on this board) it's so out of date as to be practically useless - 51 pages and nearly all from pre-pension freedoms in 2015, which changes the equation a lot in the favour of pensions.

Bear this is mind if you read it - ignore any talk of compulsory annuities or capped drawdown which is all out of the window now.

Dazed_and_confused

I realise my details are a little short but I could live without the money just fine.

At the moment no one has any idea if you would receive 0% tax relief or 60%+ tax relief. So impossible to have any idea which would be financially the better option.

From a very general view pensions are more restricted, as zagfles explained, whilst S+S ISA are much more flexible but you get no tax relief when contributing/investing.