How much can I pay into my pension?

Annie1612

Sorry if this is a stupid question, I have tried googling and most information seems to deal with workplace pensions and sums far greater than I am earning and much is over my head…

Basically, I have been paying into a Stakeholder pension for a few years - contributing the maximum I could as an unemployed person ie. £2800 (3600). I am now employed part time - my earnings vary as it is zero hours contract but normally I earn between 300 and 450, though obviously it could also be nothing if I’m unable to work (no sick pay etc).

I don’t pay into any other pension. How much am I allowed to pay into my stakeholder each month please?

Thanks.

Dazed_and_C0nfused

Roughly what do you expect the "between 300 and 450" to equate to by the end of the tax year?

Annie1612

Dazed_and_C0nfused said:

Roughly what do you expect the "between 300 and 450" to equate to by the end of the tax year?

I suppose about 4200 if I take the average. 

Dazed_and_C0nfused

Annie1612 said:

Dazed_and_C0nfused said:

Roughly what do you expect the "between 300 and 450" to equate to by the end of the tax year?

I suppose about 4200 if I take the average. 

That will be new (gross) limit then.

£3,360 from you plus £840 tax relief.

Might be prudent to wait till nearer the bed of the year before contributing all of that in case earnings are less.  

Maybe pay £3,600 (gross) as soon as you want to and then re-evaluate in Feb/March.

Annie1612

Thank you, just getting my head round those numbers. So, I can continue paying the amount I was paying when I was unemployed, then I can add in, at the end of the year, any amount over that, up to my maximum earnings for the year.

Dazed_and_C0nfused

Annie1612 said:

Thank you, just getting my head round those numbers. So, I can continue paying the amount I was paying when I was unemployed, then I can add in, at the end of the year, any amount over that, up to my maximum earnings for the year.

Yes.  Irrespective of earnings you will be able to add £3,600 (gross) each year.

Qyburn

Annie1612 said:

Thank you, just getting my head round those numbers. So, I can continue paying the amount I was paying when I was unemployed, then I can add in, at the end of the year, any amount over that, up to my maximum earnings for the year.

You'll need to do it before the actual end of the tax year as it can't be back dated. So you may have to work off an estimate for the last month.

zagfles

Is there any workplace pension?

Annie1612

zagfles said:

Is there any workplace pension?

I have no idea. It is just zero hours contract working for a voluntary sector organisation. Nothing has been said to me but I see it as short term employment so would prefer my own arrangements.

zagfles

Annie1612 said:

zagfles said:

Is there any workplace pension?

I have no idea. It is just zero hours contract working for a voluntary sector organisation. Nothing has been said to me but I see it as short term employment so would prefer my own arrangements.

You still can but if there's a workplace pension, depending how it's paid, it could affect the limits on what you can contribute to your own arrangements. You could opt out of the workplace pension but probably not a good idea if it means losing out on employer contributions. As you earn well under the threshold for AE the employer doesn't have to enroll you, but they could still offer to.