We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Starting another Pension after early Retirement and tax .

With the government removing the upper limits on pension savings (previously 1.25m) and with the cost of living I am thinking about a part time job after taking early retirement (12 months ago). To be tax efficient it seems to make sense to start a new pension/avc from pre tax wages . 
I think the pension I have taken is now considered as income and not pension saving.
But what is the limit I can put into a new pension and is there any tax issues from already having a pension especially as this was within three years?
Any advise welcome . 

Comments

  • With the government removing the upper limits on pension savings (previously 1.25m) and with the cost of living I am thinking about a part time job after taking early retirement (12 months ago). To be tax efficient it seems to make sense to start a new pension/avc from pre tax wages . 
    I think the pension I have taken is now considered as income and not pension saving.
    But what is the limit I can put into a new pension and is there any tax issues from already having a pension especially as this was within three years?
    Any advise welcome . 

    Will you be limited by MPAA?


  • Albermarle
    Albermarle Posts: 26,448 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    Normally you can add up to your gross earnings from employment. However it depends on what kind of pension you are currently getting as you might be limited by the MPAA.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 349K Banking & Borrowing
  • 252.4K Reduce Debt & Boost Income
  • 452.7K Spending & Discounts
  • 241.9K Work, Benefits & Business
  • 618.4K Mortgages, Homes & Bills
  • 176.1K Life & Family
  • 254.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.