Topping up Pension in Drawdown

Gubs113

My Partner retired 2 years go (aged 60) with a good DB scheme and a cluster of small SC schemes that I consolidated into Pension Bee ( a further DB scheme start paying out in 3 yrs time )

She is a std rate tax payer

The PensionBee fund  we drawdown sums, as needed (25% tax free, 75% taxed)

In the last 2 previous year we have topped up the PensionBee account by the £2880 to give an extra £3600 (due to the tax relief) - the max allowed

Is my understanding  that this limit has now been increased to £10K
(So could invest £8000 into PensionBee and get £2000 "Tax back" to give us the £10K) 

Thanks 


(I have a 2nd unrelated Qu but that will be another thread) 

MallyGirl

Gubs113 said:

My Partner retired 2 years go (aged 60) with a good DB scheme and a cluster of small SC schemes that I consolidated into Pension Bee ( a further DB scheme start paying out in 3 yrs time )

She is a std rate tax payer

The PensionBee fund  we drawdown sums, as needed (25% tax free, 75% taxed)

In the last 2 previous year we have topped up the PensionBee account by the £2880 to give an extra £3600 (due to the tax relief) - the max allowed

Is my understanding  that this limit has now been increased to £10K No - that is not correct
(So could invest £8000 into PensionBee and get £2000 "Tax back" to give us the £10K) 

Hi

the limit is still £3600 gross for non earners. The MPAA changed to £10k a while ago but that is not relevant to this situation.
To contribute £10k they must have £10k earned (not pension) income

molerat

Is my understanding  that this limit has now been increased to £10K
(So could invest £8000 into PensionBee and get £2000 "Tax back" to give us the £10K)

No.  The MPAA, the amount you can contribute after withdrawing taxable amounts from a DC scheme, has been increased to £10K provided you have sufficient relevant earned income.  The nil income rate is still £3600, £2880 net.

Gubs113

OK cheers  - another £2880 it is then (as she doesn't earn any income)