Additional pension contributions-tax

sumodogy

Sorry for a numpty question. 

I’m 62 in December and have a DB pension that’ll start paying out c£10k pa. I’m in employment on £58k pa so don’t want to get hit on 40% tax on the £10k (which tbh I don’t need to live on). 

Can I use it to make additional contributions to my existing work DC pension? Would the additional contributions be tax free and if so how do I go by about it?

Thanks

Dazed_and_C0nfused

Which method would you use to contribute the additional payments?

Net pay, relief at source or salary sacrifice?

Until you know and that you cannot understand how it will impact your income tax liability.

sumodogy

Told you it was a numpty question… how do I understand the options? Are you ware of a guide anywhere. I couldn’t find one. 

Albermarle

Tax relief on pension contributions | MoneyHelper

Net pay scheme - Your pension contribution is taken from your gross salary before any tax is taken. 

Relief at source - Your contributions are taken from your pay after it is taxed 

Salary sacrifice - Your salary is reduced and your employer makes extra contributions to your pension.

If you check your pension online, if it is net pay you will see separate contributions from you and your employer, but no tax relief added. If it is Relief at source you will also two contributions but tax relief will be added by the pension provider to your contributions.
If it is salary sacrifice there will only be an employer contribution.

xylophone

have a DB pension that’ll start paying out c£10k pa. 

If you defer drawing the pension, does the scheme offer late payment increases?

https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/retiring-later-or-delaying-taking-your-pension-pot

Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

What is the name of your DC Pension Scheme?