Paying Into A Pension After Retirement

You re still eligible for tax relief on your pension contributions as long as you re under 75 so if you re a basic rate taxpayer you ll get 20p in tax relief for every pound you make in pension contributions.

Paying into a pension after retirement. Try our tax relief calculator. She can make 720 a year tax free by paying 2880 net into a pension having it grossed up to 3600 then withdrawing it. You don t pay national insurance if you work past state pension age. When paying money into a pension after you ve taken your tax free cash you need to be mindful of the tax free cash recycling rule.

Income tax is not taken off your state pension even if you have to pay tax. When you pay money into your pension the government will automatically add 20. The actual amount you can pay in a tax year for tax relief purposes is the greater of. The benefits to paying into a pension after retirement.

If you are working while claiming your state pension income tax will be deducted from your wage after taking into account your income state pension and any other pension income you receive. It aims to stop people exploiting pension tax relief rules. A gross contribution of 3 600 or. For one the government will automatically add 20 when you pay money into your pension.

3 january 2017 at 9 39am edited 3 january 2017 at 11 14am in pensions annuities retirement planning jamesd wrote in another thread the following. Find out more about tax after you reach state pension age. You receive tax relief on your contributions as you pay in to your pension and your savings have the possibility of growing with minimal tax. I am a little confused with the gov uk website on pensions.

Yes you can continue to pay into your pension if you have stopped work or if you have ceased full time work and are now only working part time. There are many reasons why you should aim to continue paying into a pension even after you ve retired. It says you can take up to 25 of your pension as a tax free lump sum and you ll then have six months to start taking the remaining 75. If you pay 40 or 45 tax you can claim back even more through your tax return.

You could pay tax it depends on the size of your total income. Whichever you choose you may have to pay tax on it.