Starting a pension as a carer

emma.cook3

I would like to start a pension. I am a carer, on carers allowance so need something that I can pay more when I can afford it, but can also pay a minimum when I can't. I have been reading articles and think I need a personal pension, but can't work out which and how to compare pension options. Thank you

xylophone

Perhaps a simple stakeholder would suit?.

Example

https://www.standardlife.co.uk/pensions/stakeholder-pension

If you have no relevant earnings, you are limited to a total  net annual contribution of up to £2880 to which tax relief of up to £720 will be claimed by the provider and added to your pot.

YBR

xylophone said:

Perhaps a simple stakeholder would suit?.

Example

https://www.standardlife.co.uk/pensions/stakeholder-pension

If you have no relevant earnings, you are limited to a total  net annual contribution of up to £2880 to which tax relief of up to £720 will be claimed by the provider and added to your pot.

Surely you can save as much as you like into a pension, but the maximum applies to the tax relief which can be claimed?

Dazed_and_C0nfused

YBR said:

xylophone said:

Perhaps a simple stakeholder would suit?.

Example

https://www.standardlife.co.uk/pensions/stakeholder-pension

If you have no relevant earnings, you are limited to a total  net annual contribution of up to £2880 to which tax relief of up to £720 will be claimed by the provider and added to your pot.

Surely you can save as much as you like into a pension, but the maximum applies to the tax relief which can be claimed?

True but not many people want to add money without the tax relief as the 75% which isn't a TFLS will still be taxable when taken out even if no tax relief was received on the way in.

And I don't think many providers like to accept personal contributions which don't get tax relief.

xylophone

• Surely you can save as much as you like into a pension, but the maximum applies to the tax relief which can be claimed?

  
  
  Yes, this is the case - to be clearer still, after age 75, there is no tax relief  even on the "basic amount".
  
  https://www.royallondon.com/guides-tools/pension-guides/pension-basics/how-your-pension-is-taxed/
  
  You can put as much money as you like into a pension but there are limits on how much tax relief you can get on your contributions.
  
  https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm044100
  
  https://www.actuarialpost.co.uk/article/pension-tax-planning-at-age-75-21148.htm
  
   Tax relief is not available on pension contributions made after age 75 and as a result many providers do not accept them. 
  
  
• 
  The OP  is in receipt of CA and therefore under SPA (and therefore under age 75) - it would appear from the post   that  financial circumstances are such that only modest contributions to a pension would be possible.
  
  A person under age 75 wishing to make non tax  relievable contributions would  be in the position of a person over age 75 in terms of finding a provider willing to accept them.

Albermarle

YBR said:

xylophone said:

Perhaps a simple stakeholder would suit?.

Example

https://www.standardlife.co.uk/pensions/stakeholder-pension

If you have no relevant earnings, you are limited to a total  net annual contribution of up to £2880 to which tax relief of up to £720 will be claimed by the provider and added to your pot.

Surely you can save as much as you like into a pension, but the maximum applies to the tax relief which can be claimed?

Two problems here:
1) Whatever you contribute to a personal pension, the provider will automatically add basic rate tax relief. They are not set up to do otherwise AFAIK.
2) If you could add contributions without tax relief it would anyway be a bad idea for nearly everybody, as you would still pay tax on withdrawal. It would make a lot more sense to add the money to a S&S ISA instead,