Final pension push - is this possible

Marcon

scobie said:

Dazed_and_C0nfused said:

I’m thinking of putting this entire salary into their pension scheme - they pay an attractive 8 percent also so in effect it would be 108% of my gross extra salary invested in a pension fund. 

My main employer knows. They have no problem. I’m assuming that as my taxable income isn’t changing (because all the extra income is going into my pension) my tax and NI liability won’t change also. 

What am I missing?

Will your new employer actually allow that?  Or do you mean you will be paid most of the money and separately put it into your own personal pension or SIPP?

Just curious - why wouldn’t they allow that. If they allow me to put in 8% to match their 8% and allow me to put in more, why wouldn’t they allow me to put in as much as my income as I want, up to whatever legal maximum applies? 

Usual reason is purely administrative.

Cus

What happens at age 62 that means you won't be a bit bored then?

eastcorkram

Cus said:

What happens at age 62 that means you won't be a bit bored then?

I thought it was just me wondering that 😂

WYSPECIAL

eastcorkram said:

Cus said:

What happens at age 62 that means you won't be a bit bored then?

I thought it was just me wondering that 😂

That’s what I thought too. 
If you’ve tried working part time and got bored then how are you going to cope with going from full time to zero?
If you enjoy working there is nothing to lose and it will boost your savings, whether you will need those savings during your lifetime is another matter, but if you enjoy work and saving what have you got to lose? You could give up either or both jobs whenever you choose.

scobie

WYSPECIAL said:

eastcorkram said:

Cus said:

What happens at age 62 that means you won't be a bit bored then?

I thought it was just me wondering that 😂

That’s what I thought too. 
If you’ve tried working part time and got bored then how are you going to cope with going from full time to zero?
If you enjoy working there is nothing to lose and it will boost your savings, whether you will need those savings during your lifetime is another matter, but if you enjoy work and saving what have you got to lose? You could give up either or both jobs whenever you choose.

I’ve promised the wife I retire from the corporate world at 62. At that point I rent my U.K. house and move to Thailand where I have a house and an apartment. 

Then my wife and I do two things: I help her build up her business so it can run without her and we spend the next five years travelling six months a year.  

Who knows? If I need some stimulus I might do some consulting from afar. 

I love MSE. I ask a question and the responses range from: 

“you’re not saving enough”
“Why do you need so much?”

🤣

Albermarle

scobie said:

Dazed_and_C0nfused said:

I’m thinking of putting this entire salary into their pension scheme - they pay an attractive 8 percent also so in effect it would be 108% of my gross extra salary invested in a pension fund. 

My main employer knows. They have no problem. I’m assuming that as my taxable income isn’t changing (because all the extra income is going into my pension) my tax and NI liability won’t change also. 

What am I missing?

Will your new employer actually allow that?  Or do you mean you will be paid most of the money and separately put it into your own personal pension or SIPP?

Just curious - why wouldn’t they allow that. If they allow me to put in 8% to match their 8% and allow me to put in more, why wouldn’t they allow me to put in as much as my income as I want, up to whatever legal maximum applies? 

Something to be aware of in the world of pensions. Just because what you want to do is legal, it does not necessarily follow that the pension provider will offer it as an option.

This may be more significant when you want to access the pension, when you are in Thailand/not UK resident.

scobie

Albermarle said:

This may be more significant when you want to access the pension, when you are in Thailand/not UK resident.

Yup

That’s why my strategy has always been to make sure the assets to fund my retirement has always focused on flexibility and why I’m comfortable the pension fund part of the pot is around a third of the total.