pension query from a tax perspective - first timer

Hopeless2

DT2001 said:

If you follow this link https://www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension/pensions-and-tax/pension-lump-sum-recycling I think it will reassure you that you are O.K. You are increasing your contributions as a result of drawing your pension not from the lump sum. If you keep the lump sum intact in a savings account or ISA it cannot have been used for your pension. 
You can always set out your circumstances to HMRC and they’ll confirm their thoughts. I have found them very helpful even if not to my ‘advantage’.

I did contact hmrc , they were slightly vague also did say normal retirement lump sums are not part of this .
anyway I sent it on to my IFA , he feels they are discreetly saying I would be fine .
no pre planning .
no intention to use the lump sum and still unsure what do with it .
big increase in earnings as now receiving a DB pension on top of salary , don’t need that income .
in 50s and more aware now of retirement looming and need bigger pot.
lockdown and nothing else to spend on

TVAS

If it is in a savings account earning absolutely nothing why not put it into National Savings premium bonds to have a chance of winning a prize. 

HobgoblinBT

Speak to a pensions advisor ASAP, particularly if you are a higher rate taxpayer as changes to tax on pension contributions are rumoured in the next budget.  

One can make pension payments of up to your annual salary into a pension, subject to a limit of £40,000, and in some cases go back several years to use unused allowances.

You can pay lump sums into pensions and it may be good to do so, but you also need to consider your current tax rate with pension and salary combined, your future fully retired pension tax position, your spouse’s pension and tax position and your employer’s scheme before deciding what may be best option or options) for you.

If your employer operates the scheme through salary sacrifice, use their scheme as you will save national insurance, and in any case consider paying in sufficient to take advantage of any matching employer contributions.  

Hopeless2

HobgoblinBT said:

Speak to a pensions advisor ASAP, particularly if you are a higher rate taxpayer as changes to tax on pension contributions are rumoured in the next budget.  

One can make pension payments of up to your annual salary into a pension, subject to a limit of £40,000, and in some cases go back several years to use unused allowances.

You can pay lump sums into pensions and it may be good to do so, but you also need to consider your current tax rate with pension and salary combined, your future fully retired pension tax position, your spouse’s pension and tax position and your employer’s scheme before deciding what may be best option or options) for you.

If your employer operates the scheme through salary sacrifice, use their scheme as you will save national insurance, and in any case consider paying in sufficient to take advantage of any matching employer contributions.  

Hi, You cant use the lump sum - that would then be recycling , that is the whole point of my thread - do not use the lump sum to pay back into pension .  I will prob invest that into S+S ISAs I think , once the one year bond matures.
Yes i already get my max employer contributions.   But as I do not need the DB pension income it seems I am fine to use this to pay extra into my new works DC pension.
Nobody knows what will happen regarding the budget and future tax legislation. That deserves a thread of its own