Anyone here put over £40k per year in their pension pot?

No, me neither.

 

Anyone on here earn 40k a year?

 

Levelling up again haha

 

I haven't got a pot to p1 ss in.

 

So disappointed I retired early cos when I did last year, I could only put £1.08 million in my pot now they've made it unlimited. What an opportunity missed, how I wish I'd stayed now

 

I had a financial advisor look at my pension plan. His recommendation was to not live for very long.

 

Living on pit pension

 

More excellent policy making to benefit those who really need it.

I've paid into a pension for 2 years of my 16 year working life. Cost of living has meant I've needed the money now.

 

Never earned £40k never mind invested.
My favourite motto. "Work to live, not live to work".
Fortunately i was on a reasonable salary to live on.
£34k gross my final year. With decent pension contributions from myself and employer. Young folk need to look at pensions if they can afford it. Too many leave it too late thinking they'll be ok when reaching retirement age.

 

I've spent my first million on beer, women and gambling. I wasted the rest.

 

If I worked out how much I'd spent watching tarn. I'd probably have a fit. And if the mrs knew, a divorce.

 

The bit I don't get ........ and it's not a political observation; it's a 'being thick as 2 short planks' observation. i.e. 'Me'.

The old limits were you could have a £1.07 mill pension pot, or higher (but subject to tax).
And you could contribute up to £40k a year to the pot - or more (but subject to tax).

And his theory was he wanted high-earning, professional people to return to work / stay in work instead of being free enough to retire at say 50?

So the new limit is ........ there ain't no limit.
And you can now contribute £60k a year to the pot before tax kicks in.

Now if I was a high earning professional, in my 30's or 40's ......... aren't these new rules going to make it easier to retire at 50? Why would I want to carry on working and risk popping my clogs and not seeing the benefit of the vast pot I've paid into?

 

But even if you are a high earner you can't put in more than £4k a year due to taper. Anyone on over £350k is restricted to a £4k pension contribution.

Edit the £4k has also been increased to £10k and that applies to both taper and those currently in receipt of pension. The 25% tax free allowance has been frozen at £268, 275 or 25% of the old life time allowance.

 

Surely you aren’t suggesting that a policy from a Conservative government has actually been designed solely to benefit those best off, and not to do what they actually say they are doing it for?

In this case let the highest earners keep a massively bigger chunk of their already obscenely high pension pots, likely contributed to by themselves only a limited amount, rather than it attract people aged 50+ back to work like they are saying?

Surely not, this is a government of integrity.

 

They'll have to try a hell of a lot harder to get me back to work

 

My guess would be folk earning enough to put £60k into a pension pot are on at worse £240k a year, based purely on the fact I was maxing myself out at 25% salary sacrifice into my pot in the last 5 years. If you're on £240k a year that's still a helluva drop to what your pension income is gonna be and will those in their early 50's on that whack want to take that cut?
Cutting your cloth to live on a pension is imo, more doable on a middle income, if you've lived a life in the higher echelons, can you really cut to what average Joe lives on?
I left at 54, there's directors at my place on a lot more than that £240k, still working in their 60's.
Work to live, don't live to work, life's too short, etc.......

 

Once you've started taking your tax free income?

 

If I live that long (touch wood, hate forecasting these things, think it's morbid). I'm retiring at the earliest age my pension at the NHS will allow.

 

Most ( only?) sensible thing I ever did was start a pension when I was 20. That would be my advice to anyone, as soon as you can, as little as you can and maintain it.

 

No, if your adjusted income is over £240k pa your ability to contribute goes down £1 for every £2 over the allowance. When the max was £40k that meant when you hit £312k and above your pension allowance was a fixed £4k.

I've not seen the detail but presuming now that will be £352k if all else remains the same.