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Over 55 - pay into a pension or ISA?

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Comments

  • AlanP_2
    AlanP_2 Posts: 3,546 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    You can get tax relief on private pension contributions worth up to 100% of your annual earnings.

    That is correct.

    If your earnings were £30k and you contributed that to a pension GROSS then £6k would be 20% tax RELIEF and you would add a net £24k from your own money.

    Pension contributions are best thought about at the GROSS level and most, if not all, official terminology will follow that convention. 
  • bigjoe
    bigjoe Posts: 302 Forumite
    Part of the Furniture 100 Posts Name Dropper Photogenic
    edited 4 December 2024 at 1:57PM
    Thank you both for explaining the GROSS element as I didn't know that was the case. Every day is a school day!
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