Offsetting Mortgage

Pangolin76

AlanP_2 said:

Pangolin76 said:

AlanP_2 said:

csgohan4 said:

NottinghamKnight said:

There are a lot of higher rate taxpayers in the nhs too (which 'only' £8k suggests might be the case above), so double the amount lying on the footpath; the flip side is of course potential issues around breaching the annual allowance given the db scheme already in place.

be careful with DB pensions, it is not just based on your annual contributions, but also the growth of ones pension, which is difficult to quantify due to the failures of PSCE and delaying their statements by 6-12months. 

If you are reaching almost your AA figure, you may want an IFA or accountant to guide your choices

What's PSCE?

With the LGPS it is quite easy to work out what the AA charge will be, there is even an online calculator on the main LGPS website if you can't do it yourself.

This is something I have repeatedly complained about with the NHS, we have no decent tools for anything, there used to be calculators but these are out of date. I emailed SBS who said 'we're working on it'.......work a bit faster as its been years since we've had anything....

Unless you have had a change of circumstances since last year is it that difficult in the NHS scheme to work it out yourself?

You know last years amounts for Annual Pension and Lump Sum if applicable from statement.

You know your salary and your contribution rate.

Indexation on last year's numbers is based on September CPI as used for SP etc.

Then it is just an Excel calculation, or even a calculator and pen / paper as per formula / examples at https://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension/pensions-and-tax/the-annual-allowance

Try it out on the last 2-3 years statements and see how your calculation compares to what they make it.

I have worked it out manually but I'd trust a calculator more...about time the NHS caught up with the rest of the public sector

barnstar2077

I would personally pay most of it off of the mortgage.  I would then keep a few months worth of emergency money in a low risk savings account.  Then you have a thousand pound or more a month to invest.  You don't have to put that money away every month, you could take the odd month off of investing for treats.  Think of how much better you will sleep!

Thrugelmir

Pangolin76 said:

AlanP_2 said:

Pangolin76 said:

AlanP_2 said:

csgohan4 said:

NottinghamKnight said:

There are a lot of higher rate taxpayers in the nhs too (which 'only' £8k suggests might be the case above), so double the amount lying on the footpath; the flip side is of course potential issues around breaching the annual allowance given the db scheme already in place.

be careful with DB pensions, it is not just based on your annual contributions, but also the growth of ones pension, which is difficult to quantify due to the failures of PSCE and delaying their statements by 6-12months. 

If you are reaching almost your AA figure, you may want an IFA or accountant to guide your choices

What's PSCE?

With the LGPS it is quite easy to work out what the AA charge will be, there is even an online calculator on the main LGPS website if you can't do it yourself.

This is something I have repeatedly complained about with the NHS, we have no decent tools for anything, there used to be calculators but these are out of date. I emailed SBS who said 'we're working on it'.......work a bit faster as its been years since we've had anything....

Unless you have had a change of circumstances since last year is it that difficult in the NHS scheme to work it out yourself?

You know last years amounts for Annual Pension and Lump Sum if applicable from statement.

You know your salary and your contribution rate.

Indexation on last year's numbers is based on September CPI as used for SP etc.

Then it is just an Excel calculation, or even a calculator and pen / paper as per formula / examples at https://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension/pensions-and-tax/the-annual-allowance

Try it out on the last 2-3 years statements and see how your calculation compares to what they make it.

I have worked it out manually but I'd trust a calculator more...about time the NHS caught up with the rest of the public sector

Aren't annual statements sufficient? 

AlanP_2

Thrugelmir said:

Pangolin76 said:

AlanP_2 said:

Pangolin76 said:

AlanP_2 said:

csgohan4 said:

NottinghamKnight said:

There are a lot of higher rate taxpayers in the nhs too (which 'only' £8k suggests might be the case above), so double the amount lying on the footpath; the flip side is of course potential issues around breaching the annual allowance given the db scheme already in place.

be careful with DB pensions, it is not just based on your annual contributions, but also the growth of ones pension, which is difficult to quantify due to the failures of PSCE and delaying their statements by 6-12months. 

If you are reaching almost your AA figure, you may want an IFA or accountant to guide your choices

What's PSCE?

With the LGPS it is quite easy to work out what the AA charge will be, there is even an online calculator on the main LGPS website if you can't do it yourself.

This is something I have repeatedly complained about with the NHS, we have no decent tools for anything, there used to be calculators but these are out of date. I emailed SBS who said 'we're working on it'.......work a bit faster as its been years since we've had anything....

Unless you have had a change of circumstances since last year is it that difficult in the NHS scheme to work it out yourself?

You know last years amounts for Annual Pension and Lump Sum if applicable from statement.

You know your salary and your contribution rate.

Indexation on last year's numbers is based on September CPI as used for SP etc.

Then it is just an Excel calculation, or even a calculator and pen / paper as per formula / examples at https://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension/pensions-and-tax/the-annual-allowance

Try it out on the last 2-3 years statements and see how your calculation compares to what they make it.

I have worked it out manually but I'd trust a calculator more...about time the NHS caught up with the rest of the public sector

Aren't annual statements sufficient? 

Unfortunately, for our LGPS at least, they tell you in August what AA you have used up as at the previous April. So to work out what spare AA you may have in the current tax year for investing in SIPP / AVC you need to calculate your likely DB AA charge.

Payrises are in April for me, so start of year so unless a promotion or something occurs I can work mine out fairly accurately.

My wife's are mid year so annual income is a combination of 2 pay points. Makes it a bit trickier but still doable.

Final adjustments made once annual incomes nailed down and Spetember CPI figure announce, that leaves 5 months of higher / lower contributions as applicable.