Pension contributions while unemployed.

DozyD · 9 February 2021 at 3:44PM

Hi everyone. I was made redundant in October last year, after being on furlough since March and then give 12 weeks notice from July. I have been receiving JSA since December, I'm in the process of transfering my old works pension to Pension Bee. If I begin making a monthly contribution will I be entitled to tax relief and would that change in the next tax year. I was a lower rate taxpayer employed continually for 21 years.
Many thanks for any advice.

MallyGirl · 9 February 2021 at 3:56PM

even if you earn nothing you can contribute £3600 gross to a pension - £2880 from you and £720 tax relief even though you didn't pay tax. You have had earnings in this year from furlough so you can contribute up to that amount gross.

DozyD · 9 February 2021 at 4:01PM

That's great thanks.

michaels · 9 February 2021 at 4:58PM

Anything you pay into your pension will also be deducted from your income (for example savings interest) for income related benefits. However it might be counted as deprivation of capital for capital assessed benefits.