Pension to savings ratio

MallyGirl

noting that the annuity does not count as earned income so that reduces the amount they can contribute from their income

NoMore

https://forums.moneysavingexpert.com/discussion/comment/82006255#Comment_82006255

We were all fully aware of it could take 2 or 3 years, the point was originally you didn't seem to understand this and we were explaining why.

DRS said:

Be careful about the "Move 60K from savings to pension" bit. If you are a basic rate taxpayer that may take you some time.

and you responded:

Out of interest - why?

Albemarle responded:

I think the point being made for the benefit of the OP is that you can not add more to a pension each tax year, than your gross salary . So if the OP earns say £40K, he can not add more than £32K + £8K tax relief.

In theory you can add more and not get tax relief, but not a sensible option normally.

You replied:

Isn't max contribution 60K gross?

and then

Surely it is 60K regardless of income? If the OP has savings as he suggests, then he can move 60K/annum into a pension if he has no other contributions. As you say, he also has the c/f allowance so could be more if he wishes.

We don't know what the OP puts in presently. 60K could very well mean he benefits from the HMG contribution.

Still don't understand the time constraint.

Which led to further discussion of the AA and the tax relief limit and why it would be better to do it over several years.

And now you are claiming you meant over two or three years all along, which doesn't seem that was your intial intention, so what was your point that was missed.

HedgehogRulez

how embarrassing 😳