Retirement

[Nookie Bear]

One of the key pension annual allowance carry forward rules is that you can’t receive tax relief on contributions in excess of your earnings in any tax year. For example if a person earns £80,000 in a tax year, they can only contribute up to £80,000 to their pension that tax year. No matter how much unused allowance they have remaining from the previous three years, they can only bring forward £20,000 so that their pension contributions equal their annual salary.

Wow I was so stressed about all this pension, isa,sipp and shares stuff it was scary got a ifa and within an hour it was simplified, probably the most important decision I made in retirement you need professional advice and the cost is irrelevant as the moneys invested well pays for there service

I’m an accountant I had a free appointment with Newcastle building society and formulated a plan then looked into rebel finance and refined - no need to pay an IFA just need to not fuck up and inadvertently move out your ISA money

 

[ChrisK]

One of the key pension annual allowance carry forward rules is that you can’t receive tax relief on contributions in excess of your earnings in any tax year. For example if a person earns £80,000 in a tax year, they can only contribute up to £80,000 to their pension that tax year. No matter how much unused allowance they have remaining from the previous three years, they can only bring forward £20,000 so that their pension contributions equal their annual salary.

I’m an accountant I had a free appointment with Newcastle building society and formulated a plan then looked into rebel finance and refined - no need to pay an IFA just need to not fuck up and inadvertently move out your ISA money

Schoolgirl error, I not an accountant but lucky for me my fa advised and managed to claw back a shit load of overpaid tax for me by paying my redundancy into a Sipp using up 3 years pension top up allowance
Had a few graft mates refused to pay a FA they lost out

 

[The Muffin Man]

Latest statutory pension age review looks like those of us aged 51 to 53 who were going to be getting state pension at 67 now been increased to 68. The original date of change been advised to be brought forward so gonna now fall into it. Looks like I need to plan for an extra year of self financing before the state part kicks in...Starting to think there is some sort of conspiracy between the X wife and Govt to have me work forever

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[Nookie Bear]

Schoolgirl error, I not an accountant but lucky for me my fa advised and managed to claw back a shit load of overpaid tax for me by paying my redundancy into a Sipp using up 3 years pension top up allowance
Had a few graft mates refused to pay a FA they lost out

I think that would work because your redundancy is classed as income so the extra amount is covered as earnings in the year - actually that’s another good option trying to get made redundant by the end of the year

 

[Blodwyn Pig]

You’re right that it’s hard to call exactly when. I’ve been on the glide path down for four years now (I won’t give my age but I was mid fifties) working on average 3 days a week gig/consultancy/board roles. Earned enough to cover the lifestyle and continue saving a little and have loved the time gained. I’ve hummed and ha’d about when to stop altogether. I made a big call today: told my IFA I want to call it complete quits in 18 months.

TBH the universe is beginning to tell me it’s time. It’s harder to get things I apply for and one of my biggest money earners this year has been to train some folk in their forties to deliver some training I do. It’s the right thing for the organisation to do but by the end of the year they’ll all be on stream. Plus last week the council told me that after four years waiting I’ve finally got an allotment

Now your life will really change for the better. There’s a Japanese proverb which goes along the lines of :
If you wish to make a man happy for a day feed him noodles
If you wish to make a man happy for a year find him axwife
If you wish to make a man happy for life get him to grow plants
I was very fortunate in that I moved house , built the half wall 26’ greenhouse , 3 x 8 m raised beds .
It is a massive burden . But only because I want it to be. I grow everything or at least try and have great success I give tomato’s , green beans , beetroot , courgettes , peas, carrots , mange toute, spring onion and every herb, to neighbours and friends. The garden genuinely smells of sweet peas ( all grown from seed)
It’s not about what you get out but for me an immense sense of satisfaction in growing something from seed.
Hours are lost, perhaps days , in a world I just love.

 

[JAZZMANB]

You can but limited by current year salary so if salary this year was £80k I’d be grand but it’s sadly not

I'm lost ,you can put in 3 years at current salary ,less what you've put in in those years and you say you want to add current salary plus 15k and you're over ?

 

[ChrisK]

Now your life will really change for the better. There’s a Japanese proverb which goes along the lines of :
If you wish to make a man happy for a day feed him noodles
If you wish to make a man happy for a year find him axwife
If you wish to make a man happy for life get him to grow plants
I was very fortunate in that I moved house , built the half wall 26’ greenhouse , 3 x 8 m raised beds .
It is a massive burden . But only because I want it to be. I grow everything or at least try and have great success I give tomato’s , green beans , beetroot , courgettes , peas, carrots , mange toute, spring onion and every herb, to neighbours and friends. The garden genuinely smells of sweet peas ( all grown from seed)
It’s not about what you get out but for me an immense sense of satisfaction in growing something from seed.
Hours are lost, perhaps days , in a world I just love.

Sounds class but No good for me mate exploring our great country during the summer and on holiday as much as possible during the winter but good luck

 

[WHD]

Latest statutory pension age review looks like those of us aged 51 to 53 who were going to be getting state pension at 67 now been increased to 68. The original date of change been advised to be brought forward so gonna now fall into it. Looks like I need to plan for an extra year of self financing before the state part kicks in...Starting to think there is some sort of conspiracy between the X wife and Govt to have me work forever

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They can get to fuck with that like

 

[The Muffin Man]

They can get to fuck with that like

Statutory review every 5 years, thats the recommendation, cant see it not happening. Absolutely gutted, got my retirement date dialled in (its well before 67) but this will mean having to save to cover that extra year....State pension will be about 35 to 40% of my retirement income so well fucked off.

 

[Nookie Bear]

I'm lost ,you can put in 3 years at current salary ,less what you've put in in those years and you say you want to add current salary plus 15k and you're over ?

No

So I have surplus allowance of say £100k from last three years

I want to pay 80,000 into all pensions this year and my normal allowance is £60,000

I can only pay in £80,000 if I earn that or more this year regardless of carry forward , if I earn £70,000 I can add in the extra £10k utilising £10k of the carry forward , if I earn £65,000 I can add in an extra £5k

So to add in 80k this year I’d need to earn £80k which I don’t so the carry forward makes no difference

 

[WHD]

Statutory review every 5 years, thats the recommendation, cant see it not happening. Absolutely gutted, got my retirement date dialled in (its well before 67) but this will mean having to save to cover that extra year....State pension will be about 35 to 40% of my retirement income so well fucked off.

I'll be gutted as well.

 

[Matt Hopkins]

No

So I have surplus allowance of say £100k from last three years

I want to pay 80,000 into all pensions this year and my normal allowance is £60,000

I can only pay in £80,000 if I earn that or more this year regardless of carry forward , if I earn £70,000 I can add in the extra £10k utilising £10k of the carry forward , if I earn £65,000 I can add in an extra £5k

So to add in 80k this year I’d need to earn £80k which I don’t so the carry forward makes no difference

Well explained that carried forward rule seems to be misunderstood by loads of people

 

[JAZZMANB]

Well explained that carried forward rule seems to be misunderstood by loads of people

I still don't get it ,so respectively not well explained. Is there some kind of barrier I'm missing ? Why 70k and 80 not ?

 

[heroesof73]

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[Copacabana]

I just messaged L&G via the chat. They said mine IS protected. Then I asked for documentation to prove that because I'd like to print a copy for safe keeping. And they said it isn't written anywhere but it will be protected because it was open before a certain date.

They said can contact the scheme owners to provide clarification in writing...er, yes please.

Clear as mud!

For sure different schemes will have different rules, the guy was sure mine was not protected.

Latest statutory pension age review looks like those of us aged 51 to 53 who were going to be getting state pension at 67 now been increased to 68. The original date of change been advised to be brought forward so gonna now fall into it. Looks like I need to plan for an extra year of self financing before the state part kicks in...Starting to think there is some sort of conspiracy between the X wife and Govt to have me work forever

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Not to mention private goes from 55 to 57 the f***ing wankers

I think that would work because your redundancy is classed as income so the extra amount is covered as earnings in the year - actually that’s another good option trying to get made redundant by the end of the year

first 30k of redundancy payment is tax free if i am not mistaken

 

[moanjam]

No

So I have surplus allowance of say £100k from last three years

I want to pay 80,000 into all pensions this year and my normal allowance is £60,000

I can only pay in £80,000 if I earn that or more this year regardless of carry forward , if I earn £70,000 I can add in the extra £10k utilising £10k of the carry forward , if I earn £65,000 I can add in an extra £5k

So to add in 80k this year I’d need to earn £80k which I don’t so the carry forward makes no difference

Allowance is £60k or your salary whichever is lower, so would work out where if you're on a lower salary say £40k you can put in more than what you earn that year as long as you have the allowance available from previous years ? That's how I read it obviously different if you're earning over the £60k.

 

[Matt Hopkins]

I still don't get it ,so respectively not well explained. Is there some kind of barrier I'm missing ? Why 70k and 80 not ?

Allowance is £60k or your salary whichever is lower, so would work out where if you're on a lower salary say £40k you can put in more than what you earn that year as long as you have the allowance available from previous years ? That's how I read it obviously different if you're earning over the £60k.

Can't really explain it any better than @Nookie Bear

Say you earn £50k the most you can put in that year is £50k so notionally you have £10k that you 'could' have paid in, the next year you're still on £50k you pay in £50k so again notionally £10k spare. The next year you still earn £50k and pay in £50k but you have inherited £30k so you want to pay in that as you have the 2 spare £10k from the previous years and the £10k this year.
Unfortunately you can't as you can only ever put in your max qualifying earnings i.e £50k If you wanted to pay in the £30k you would need a job in that year paying £80k HTH

In fairness it's never really explained correctly anywhere and bottom line is it's only of any use to people earning over £60k

 

[JAZZMANB]

In fairness it's never really explained correctly anywhere and bottom line is it's only of any use to people earning over £60k

I get all the first bit
She said she had 100k unused allowance and could only put a max of 80k in ,total.
It's useful to most surely ,your average man on the street on say 30 to 40k isn't putting his full salary in a year so they 20k plus carrying over. They have a windfall and they can chuck say 80k in . Unless I'm totally missing something

 

[Matt Hopkins]

I get all the first bit
She said she had 100k unused allowance and could only put a max of 80k in ,total.
It's useful to most surely ,your average man on the street on say 30 to 40k isn't putting his full salary in a year so they 20k plus carrying over. They have a windfall and they can chuck say 80k in . Unless I'm totally missing something

No they can't. The MOST they can put in, in any year is equal to their relevant earnings.
So if you earn £40k the most they can put in is £40k no matter how many years they go back, which is why I said it only helps people who earn over £60k

 

[JAZZMANB]

No they can't. The MOST they can put in, in any year is equal to their relevant earnings.

Bingo
That's the bit I wasn't getting .
I actually used my back allowance just last year and it was of use but I didn't max out anything so I've went astray in my thinking . If say you're on 40k and putting your standard amounts in a pension through work ,deciding one year to put 40k in a pension is a big jump with a nice top up . So it is useful