Earn c130k, max pens cont - what else?

EdSwippet

csgohan4 said:

EdSwippet said:

csgohan4 said:

Annual Lifetime allowance for pensions is not solely based  on contributions, but also the growth. With that level of salary and contributions, you will reach this very quickly. As you know you can only use up your last 3 years of AA [annual allowance] if not maxed them. 

Fixed above (typo?). The lifetime allowance is the total pension pot, so both contributions and growth. The annual allowance is contributions only.

Are you sure growth is not included into the annual allowance?
https://www.pruadviser.co.uk/knowledge-literature/oracle-plus/annual-allowance/#

https://www.civilservicepensionscheme.org.uk/members/pension-savings-statements/annual-allowance/

For defined contributions (money purchase) pensions, definitely only employer and employee contributions count towards the annual allowance. Based on the post's title, "... max pens cont, ...", my assumption was that this is the type of pension the OP has.

For defined benefits (final salary) pensions, the non-AVC part, increase in final salary pension rights is factored in, as a fudge around the fact that contributions for this are -- potentially, I suppose -- notional rather than real. (Not my area; never had one.)

csgohan4

EdSwippet said:

csgohan4 said:

EdSwippet said:

csgohan4 said:

Annual Lifetime allowance for pensions is not solely based  on contributions, but also the growth. With that level of salary and contributions, you will reach this very quickly. As you know you can only use up your last 3 years of AA [annual allowance] if not maxed them. 

Fixed above (typo?). The lifetime allowance is the total pension pot, so both contributions and growth. The annual allowance is contributions only.

Are you sure growth is not included into the annual allowance?
https://www.pruadviser.co.uk/knowledge-literature/oracle-plus/annual-allowance/#

https://www.civilservicepensionscheme.org.uk/members/pension-savings-statements/annual-allowance/

For defined contributions (money purchase) pensions, definitely only employer and employee contributions count towards the annual allowance. Based on the post's title, "... max pens cont, ...", my assumption was that this is the type of pension the OP has.

For defined benefits (final salary) pensions, the non-AVC part, increase in final salary pension rights is factored in, as a fudge around the fact that contributions for this are -- potentially, I suppose -- notional rather than real. (Not my area; never had one.)

Another example are NHS pensions where growth is part of the AA
https://www.nhsbsa.nhs.uk/member-hub/annual-allowance

But then I am not an IFA, will depend on what type of pension OP has

1980ds

Defined contributions pension so your assumption was correct