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Understanding tax relief on pension contributions

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  • JoeCrystal
    JoeCrystal Posts: 3,393 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    ForestBluebells, the DWP had done the review of qualifying earnings band a few days ago and that the lower limit qualifying earnings band will increase from £6,136 to £6.240 while keeping the upper limit same at £50,000. One thing I have noted while reading the review that the government's ambition is to get rid of the lower earnings limit in the mid-2020s, so fingers crossed.
  • Ah so short term I’ll pay less contributions but hopefully soon it will be abolished and pay full contributions 
  • Is increasing your contribution from 5% to 6 or 7% an option?

    Appreciate this doesn't change the issue with qualifying earnings but it would get the higher amount you were hoping for into your pension.
  • I opened a LISA and I’m paying into that now instead of increasing workplace pension contributions 
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