Pension carry forward

Ladyjane26 · 1 February at 9:37AM

We’ve inherited my father estate when sadly losing our father last year. Although employed, I haven’t been in a company pension so haven’t contributed. Would it be best advice to use some inheritance to top-up pension contributions since 22/23, given the tax benefits?

Edit: thanks for all of your replies. I’m 60, will be earning £27,500 paye. I’m the only employee and I’ve never been invited to join a company pension scheme (it’s not really an option me talking to my boss about it as I don’t want to jeopardise my position with him and I feel awkward).

I also take dividends from 2 companies which am a director of but I understand I’m unable to use this as income?

I do have a SIPP which I would like contribute to.

Keep_pedalling · 1 February at 9:53AM

The first thing to do is to join the company pension scheme without further delay.

Dazed_and_C0nfused · 1 February at 10:08AM

https://forums.moneysavingexpert.com/discussion/6653169/pension-carry-forward

How much will you earn in this tax year, the figure you estimate will be on your P60 in April 2026?

Emmia · 1 February at 10:23AM

https://forums.moneysavingexpert.com/discussion/comment/81864540#Comment_81864540

Can I second this, by not being a member you're losing out on the potential tax benefits and any employer contribution (essentially you turn down a pay rise).

Regardless of what you do with your inheritance you should make joining the pension scheme a top priority for February.

QrizB · 1 February at 10:31AM

Although employed, I haven’t been in a company pension so haven’t contributed.

I'll third the recommendation that you join your employer's pension scheme. Employer's contributions to your pension are part of your remuneration package.

Would it be best advice to use some inheritance to top-up pension contributions since 22/23, given the tax benefits?

As D&C has asked above, how much do you expect to earn during the current tax year?

Snot · 1 February at 10:38AM

Where you a member of any pension scheme in the previous tax years ?

If not I don't believe you can use carry forward.

dunstonh · 1 February at 10:57AM

Would it be best advice to use some inheritance to top-up pension contributions since 22/23, given the tax benefits?

Its not as simple as that. You have to meet qualification criteria to be able to use carry forward.

Either by a shareholding director of own company or able to make employer contributions or earn more than £60,000 a year.

You must also already have a pension, even if it's not the pension you intend to use for the contributions. No pension means you cannot use carry forward.