Leaving work soon - SIPP or not worth it??

Augusta_Carp

Albermarle said:

OP, If you want to open a SIPP this tax year and contribute to it ( which looks like a good idea) you need to get moving !

Yes - now got the issue of comparing which SIPP platform etc is best!  Thank you.

Augusta_Carp

ColdIron said:

Augusta_Carp said:

As I have contributed £5700 to my pension this year, how much can I put in a SIPP?  (Sorry, if this is a stupid question.)

Was that £5,700 your contribution or gross? You'll need to deduct the gross amount from your earnings limit to see what's left

Not sure if it's gross?  I just quoted the amount on my payslip (March) Employee's contribution to date.

Dazed_and_C0nfused

Augusta_Carp said:

ColdIron said:

Augusta_Carp said:

As I have contributed £5700 to my pension this year, how much can I put in a SIPP?  (Sorry, if this is a stupid question.)

Was that £5,700 your contribution or gross? You'll need to deduct the gross amount from your earnings limit to see what's left

Not sure if it's gross?  I just quoted the amount on my payslip (March) Employee's contribution to date.

That will have been either,

Net pay = no pension tax relief is added but your taxable pay will be £5,700 less than your salary

Relief at source = 25% is added by the pension provider (and it had no impact on your taxable pay)

Augusta_Carp

I'm not sure then as the payslip doesn't show the taxable pay to date.  

Augusta_Carp

Looked at an old payslip when the county council did our payslips and pretty sure it's net.

Augusta_Carp

Sorry for separate posts but I don't seem to be able to edit posts.  

I am going to assume it's net and work out the gross.  I just want to double check that I don't include the Employer's Contribution to my pension.  As it's LGPS, it's quite a lot.

Thanks.

ColdIron

The LGPS suggests it's a 'Net Pay' pension arrangement (as opposed to Relief at Source) where your contributions are paid before tax is deducted and therefore won't receive relief so you shouldn't add it on

Employer contributions don't count towards your earning limit

You won't be able to edit posts yet as you are new, it will turn up in the 3 dots (...) at the top right of your posts before long

Augusta_Carp

@ColdIron Apologies for all these questions as I just want to get this totally clear - as you say 'I won't receive relief so shouldn't add it on'.  Therefore does that mean that theoretically I could contribute £44,000 (salary) - £5700 (net pay pensions contributions this year).  Thank you.

waveneygnome

Would Augusta_Carp be able to use Carry Back, and load even more into their pension?

(sorry Augusta - above my pay grade, but hopefully someone else will answer it)

ColdIron

Augusta_Carp said:

@ColdIron Apologies for all these questions as I just want to get this totally clear - as you say 'I won't receive relief so shouldn't add it on'.  Therefore does that mean that theoretically I could contribute £44,000 (salary) - £5700 (net pay pensions contributions this year).  Thank you.

On the face of it yes, It will be different next year with reduced earnings

Edit: That would use up your earnings limit but bear in mind two things

1. That would be a gross contribution, with tax relief, so your contribution would be 80% of it
   
2. You are also limited by the the £60,000 Annual Allowance, that would include employer contributions