Contribution amount

Pipkin1812

I’ll be retiring in May and taking my DB pension. I’m aware I can only contribute £2880 once retired to my SIPP. However I would like to add to SIPP in my final months working. I earn £34k (part time worker). I currently only pay in £100 a month but I believe I can pay in up to my earnings in a financial year. Is that gross or net and are there any other limitations I should be aware of?  Thanks 

Sarahspangles

The gross amount you can pay in is your relevant UK earnings. For someone with simple PAYE income it’s the taxable figure on your final payslip. Remember that’s the gross amount, so you pay 80% of that and your SIPP provider claims the 20% from the taxman.

As you have a DB pension if you were paying, say, £40k in you would probably also be advised to check whether you have exceeded the Annual Allowance of £60k. For that you need to calculate/estimate your Pension Input Amount. But it’s unlikely to be an issue, even if you do exceed it as a one off, if you’ve been working for a couple of years prior you’ll have carry forward you can use.