A
AlexB
Guest
Hi,
I'm 32, on 60k salary and am finally getting round to starting a pension. I was considering contributing 20% salary per month to take advantage of the maximum tax relief that I can, while I can (I.e. the possible plans to change to a flat rate of 30%). I have savings to make up for the shortfall in salary.
In addition to that, I was considering kickstarting the pension with a lump sum contribution. Say, 5k. However, I can't seem to find definitive information on whether that's possible and what are the tax implications. Ideally, I would like that this would also be applicable for tax relief, but I doubt it!
So, in summary:
a) Is it a good idea to max out the tax relief by contributing 20% of my salary while I can?
b) Is there any tax efficient way to kick start my pension as I've left it a bit late to start it
Thanks for any advice
I'm 32, on 60k salary and am finally getting round to starting a pension. I was considering contributing 20% salary per month to take advantage of the maximum tax relief that I can, while I can (I.e. the possible plans to change to a flat rate of 30%). I have savings to make up for the shortfall in salary.
In addition to that, I was considering kickstarting the pension with a lump sum contribution. Say, 5k. However, I can't seem to find definitive information on whether that's possible and what are the tax implications. Ideally, I would like that this would also be applicable for tax relief, but I doubt it!
So, in summary:
a) Is it a good idea to max out the tax relief by contributing 20% of my salary while I can?
b) Is there any tax efficient way to kick start my pension as I've left it a bit late to start it
Thanks for any advice