Pensions. Earning over 50k

FWIW - if your affairs are simple then if you need to claim additional relief on your pension contributions then you can do this without a self assessment, you can phone up HMRC or get setup with a personal tax account and send them a message, they'll either refund you if it's a fair bit or adjust your tax code.

Found myself in a similar position towards the end of the last tax year so opened up a vanguard account and setup a pension in there so I can easily make additional payments to keep under the all important tax bracket. Now I've got that sorted I've finally got a S&S Isa in place to build up a couple of years of cash when I retire in case the market tanks near retirement so I can take money out my pension at the right time.
 
dlockers said:
So poorly informed. No one ever do this without actually looking at numbers.
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Agree, you've got to look at fees, old pension pots could have significantly higher fees than newer ones but you've got to check. I consolidated a couple of old ones as the fees were significantly higher and when you're looking at 6 figures invested the difference is considerable, especially when you extrapolate that to retirement age.
 
slinxy said:
My bonus is likely going to take me way over, but we can choose to make a lump sum payment into my pension pot that month. Just got to see what the credit card bill looks like that month.
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Great to consider increasing pension contribs, but if you are at the point where you're weighing that up vs a potentially large CC bill, you should probably build up a bigger savings buffer first.
 
EvilRob said:
Great to consider increasing pension contribs, but if you are at the point where you're weighing that up vs a potentially large CC bill, you should probably build up a bigger savings buffer first.
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My saving buffers are fine, the CC bill is on an interest free card with more than a year to expire that I use to pay for large one off purchases.

For me it’s just easier to pay it off in one go when the cash is just sitting there in my current account than to pay it off monthly or use cash from a savers then re-top my savers monthly.
 
dlockers said:
Any pension where the employer is able to remove pension contributions from gross should be fine. That includes salary sacrifice and defined contribution. The latter being super common (just go onto your works portal/email HR and ask them to deduct more or less).


Ya but you can only put 40k a year :(
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60k now
 
As this seams to be a pensions thread I'll ask a related question - would the same idea apply to avoid paying the higher rate of tax if you have a final salary pension? So AVC basically.
 
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