should i enroll after retirement

kelvin.paul · 30 October 2019 at 10:41AM

im carrying on working past retirement for 1 or 2 years. ive taken my state pension and company final salary and now only working half the shifts i did. ive now had a letter informing me ive been auto enrolled into another. initially i didnt see the sence in this but have been advised by HR to consider it as a savings plan. If i contribute 6% the company will put in 12 plus I think I get the 20% added by the HMRC etc. On the face of it it makes sense to do it as I can have the usual tax free lump sum and then draw down the rest in batches each year but keeping under the threshold for higher tax on my annual income.
THE OTHER QUESTION IS.
Would it be worth paying in more even up to the maximum I could whatever that would be above the 6% to get ANY tax advantage contribution etc if at all.
If anyone has any practical experience of this or some actual knowledge not just opinions i would be very grateful. the window for me to do it fis November 6 - 20 but Im not going to be panicked into a bad decision.
Thanks in advance for any practical or factual replies.
Kelv

SonOf · 30 October 2019 at 12:26PM

f i contribute 6% the company will put in 12 plus I think I get the 20% added by the HMRC etc.

Free money!
Why would you want to turn it down.

Pensions are no longer a product. They are a tax wrapper. Just like ISAs and other wrappers. You should stop viewing it as a product and as a tax wrapper instead. When it comes to tax wrappers, you should pay into the ones that are most effective for you and for those over age 55, that usually means pensions nowadays.

Would it be worth paying in more even up to the maximum I could whatever that would be above the 6% to get ANY tax advantage contribution etc if at all.

Absolutely you should.

The only scenarios where you would potentially not do it are:
1 - You have activated the MPAA reducing your annual allowance to £4000
2 - You are close to or over the lifetime allowance.
3 - You are a basic rate taxpayer whilst working but will be a higher rate taxpayer whilst retired.

badmemory · 2 November 2019 at 2:12AM

Definitely take the free money but have you considered deferring your state pension, an extra 1% for every nine weeks .

should i enroll after retirement

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