Should I pay taxable redundancy cash into pension?
I will shortly receive a redundancy payment of around £42000.00. My employer does not give the option of transferring the taxable element of the redundancy payment into my pension.
At the moment I have a small pension pot of £11952.00 which was operated and paid into by my employer but their contributions end on redundancy date so I need to decide what to do with this.
I don't know whether it would be best to pay the taxable element of redundancy into my pension and then withdraw a larger lump sum or just accept the tax on the redundancy payout.
I am 66 now and have other pensions to live on so my aim would be to take as much tax free cash in this year or next.
Grateful for any advice provided. Thanks
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