Pension to savings ratio

Veloflyer

https://forums.moneysavingexpert.com/discussion/comment/82004747#Comment_82004747

..but the OP is still earning and would benefit from relief. For all we know, he may be contributing very little to a pension and the 60K would enhance any tax relief considerably.

NoMore

Are you not reading and comprehending what people are telling you ? They are saying contributing above your relevant earnings is pointless. If they earn less than 60k then contributing above their earnings to a pension because they can, is not good practice. The OP states he is a lower tax rate payer, so they don't earn 60k per year to take full advantage of tax relief on a 60k contribution.

QrizB

For all we know, he may be contributing very little to a pension and the 60K would enhance any tax relief considerably.

OP, in their own words, is a "lower rate tax payer". They cannot receive tax relief on personal pension contributions exceeding their relevant earnings, which are less than £50270.

If they contribute £60k this year, some of it will be ineligible for tax relief. Such contributions which don't receive tax relief are generally a poor idea, as illustrated above.

Shadyocuk

Even if someone wanted to contribute in excess of their relevant earnings (not sure why they would), they would have to find a scheme that would actually allow it , as most only accept personal contributions that are eligible for tax relief.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82004732#Comment_82004732

Basically - and as dunstonh admirably demonstrated earlier - that 60K is far better in a pension than languishing in cash being eaten away by inflation.

I am sure rereading his post that @dunstonh has just assumed the OP would not contribute more to a pension than he can get tax relief on, as that would be a pretty daft thing to do.

mrklaw

https://forums.moneysavingexpert.com/discussion/comment/82004437#Comment_82004437

60k gross but capped at earnings. you can go over 60k with carry forwards, but only if you have the income in that year to allow it.

Veloflyer

https://forums.moneysavingexpert.com/discussion/comment/82004810#Comment_82004810

Stick in 30K over 2 years, 20K over 3…..and again we don't know what the OP is contributing at present. Could be zero for all we know.

NoMore

This whole discussion about the AA and the tax relief started because you (Veloflyer) said you didn't understand why it may take several years, and now you are advising to do it over several years, so I hope you now understand the original comment.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82005799#Comment_82005799

From the OP

For a years, I've been able to both save in Isa's & contribute to my pension (sipp)

Atm I have around 130k in pension & 110k in savings. I also already have an annuity of £390 a month, which I make sure I put back into sipp to offset the tax that I pay on it.

Veloflyer

https://forums.moneysavingexpert.com/discussion/comment/82005875#Comment_82005875

My point wasn't answered. The discussion then veered toward my suggestion of sticking in 60K from cash. You and others repeatedly advised against it without thinking that it could be phased in over 2 or 3 years and given the OPs monthly contribution, the additional could I believe benefit from tax relief - provided his income is adequate over those years.