Pension whilst on furlough

Nenacherry

my daughter recently started a new pension whilst on furlough. She has since lost her job but thinks it’s ok to still pay into it. My understanding is she needs to have a job to make contributions and with things as they are not sure how easily she will find a new one. It was only a part time job anyway whilst at uni. She has only paid a couple of  premiums. What should she do? 

Notepad_Phil

Even non-tax payers can pay in a maximum of £2880 per tax year across the pensions they have, so make sure she does not go over that whilst not working - you do not need to work to pay into a pension so don't worry about that, I've been retired for 3 years and still pay into a pension.

I presume this is a pension that she opened herself, in which case just keep an eye on what charges it has.

bigadaj

You can't pay in more than £3600 or your earnings, whichever is higher, into a pension and gain tax relief so that's a constraint. Pension contributions are also locked away until at least 55 years of age so as you say not advisable if circumstances aren't settled and a decent cash emergency fund is in place.

Notepad_Phil

bigadaj said:

You can't pay in more than £3600 or your earnings, whichever is higher, into a pension and gain tax relief so that's a constraint. Pension contributions are also locked away until at least 55 years of age so as you say not advisable if circumstances aren't settled and a decent cash emergency fund is in place.

I think you meant to say 'you can't pay in more than £2880 or your earnings" which with tax-relief will bring it up to £3600.