DC pension contributions after retirement.

Budgie_TT

kempiejon said:

Budgie_TT said:

Hi. I am at retirement, last day is Friday....

I am lucky to be in a position where I will have no need to touch my DC pension immediately. A DB pension, state pension and savings (ISA & shares) will suffice for the time being.

Congratulations.

So presumably you've planned your retirement if so what is the DC pension for?
Once any taxable part of the DC is accessed you're limited to £10k additional in to a pension; with no relevant earnings the £3600 gross mentioned applies.

Thank you 
I do intend to access the DC pension, in particular for large expenditure, as and when, in the not to distant future. In the meantime, I do have 'cash' available. So, in the meantime my plan is to get as much benefit as possible by dropping 'spare cash' into the pot.

kempiejon

@Budgie_TT There's a piece of work it might be worth doing to see the best way to get the most tax free from your DC pension. State and DB and if already in payment will be very relevant and specific, for me annual UFPLS to limits looked like the more efficient choice when I was chewing it over. Extra income can go to ISA, indulgences or philanthropy.

Albermarle

Budgie_TT said:

That's the benefit of this forum. Putting me in touch with knowledgeable people. Thanks.

The replies raise questions in mind and I could research it (Google), but I'll take the easy option and ask.

The £3600 limit is not something I was aware of, would you care to expand a little. Specifically, under what circumstances this applies.

It seems obvious that the DB income does not count in the same way as earned income.

Pension income does not count.
Essentially only earned income counts.
As a concession non earners can add £2880 and still get £720 tax relief.
If you take the 25% tax free and pay 20% tax on the rest, the tax benefit is £180per tax year, which = 6.25%