Can I make additional contributions monthly?

chelseablue

I did try phoning them but just got a message saying try again later so thought I’d try here. 

I’m in my workplace pension, just wondering if it’s possible to add extra money each month depending on what I can spare? 

Some months could be £500 some months £50 for example. Or would a stocks & shares isa be better?

I’ve logged into the account but cant see a bit that says add extra money. 

Pension is with Legal & General 

xylophone

https://www.legalandgeneral.com/existing-customers/pensions-support/what-can-i-do-with-my-pension/
Does the above (under top up) help at all?

Albermarle

Or would a stocks & shares isa be better?

Pension is normally better as you get tax relief on contributions, as long as you can wait until you are older to access the money.

cloud_dog

....although, if the OP is younger than 40, a BRT payer, and does not enjoy Salary Sacrifice, a Lifetime ISA would be a good option for the additional monies (assuming they have maximised the employer contributions).

chelseablue

Thank you all, 

xylophone said:

https://www.legalandgeneral.com/existing-customers/pensions-support/what-can-i-do-with-my-pension/
Does the above (under top up) help at all?

Thank you, I'll have to find out how/if I can do it, don't really want to have to go through payroll all the time. Just wanted to top up with my debit card

chelseablue

Albermarle said:

Or would a stocks & shares isa be better?

Pension is normally better as you get tax relief on contributions, as long as you can wait until you are older to access the money.

Probably a stupid question but do I still get tax relief if I top up with money from my bank account? 

chelseablue

cloud_dog said:

....although, if the OP is younger than 40, a BRT payer, and does not enjoy Salary Sacrifice, a Lifetime ISA would be a good option for the additional monies (assuming they have maximised the employer contributions).

Thank you. I'm 36 and a basic rate tax payer. I think my pension contributions are salary sacrifice, they come out of my gross pay.  Would need to double check but pretty sure I do 5% of my salary 

cloud_dog

chelseablue said:

Albermarle said:

Or would a stocks & shares isa be better?

Pension is normally better as you get tax relief on contributions, as long as you can wait until you are older to access the money.

Probably a stupid question but do I still get tax relief if I top up with money from my bank account? 

Personal pensions, SIPPs operate a 'relief at source' scheme, so any money deposited (within pension contribution earnings rules) in to the account receive the basic rate of tax relief (top up), so you add £100 and £25 gets added (£25 is 20% of £125; always think in terms of the gross / larger number).

cloud_dog

chelseablue said:

cloud_dog said:

....although, if the OP is younger than 40, a BRT payer, and does not enjoy Salary Sacrifice, a Lifetime ISA would be a good option for the additional monies (assuming they have maximised the employer contributions).

Thank you. I'm 36 and a basic rate tax payer. I think my pension contributions are salary sacrifice, they come out of my gross pay.  Would need to double check but pretty sure I do 5% of my salary 

Hi

Salary Sacrifice is a contractual change to your employment and it basically means you agree to 'sacrifice' £xxx and your employer promises to pay £xxx in to your pension (usually, although there are other things that can be included).  Tax relief on your employed earning pension contributions are the usual tax relief; this is referred to as a 'net pay' scheme.  SS allows both you and your employer not to have to pay National Insurance contributions, thereby saving you an additional 12% of any contribution you make and the employer a saving of 13.8% on the same amount.

Albermarle

If your company is offering a salary sacrifice scheme , then the provider will be aware of that and will NOT add any more tax relief
If you make ad hoc payments from your bank account you want the provider to add on tax relief.
To be sure it all works OK you would be best to call the pension provider to make sure it is all set up correctly for you.