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Private pension matures at 55, only two years left. Is it worth increasing my contributions for the last two years?

3 replies

BoringSoup · 13/12/2018 14:26

I have a private pension which matures in two years when I’m 55.
Is it worth increasing my contributions from now until then, or would my extra contributions be taxed and therefore not be worth it, and let it carry on as it is?

I have been in the pension for about 25 years (Zurich).
So, say, if I put £2000 extra in, how much would be taxed?
Bear with me, as I appreciate if it might be a daft question.

OP posts:
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milienhaus · 13/12/2018 14:32

If the pension scheme is in the UK contributions to it won’t be taxed (up to the Annual Allowance limit) - not sure from your post whether it’s Swiss though?

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BoringSoup · 13/12/2018 14:34

Sorry, it’s UK,
The name of the company I have my pension with is Zurich.
Sorry for the confusion.

OP posts:
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mintbiscuit · 13/12/2018 21:02

This is a defined contribution scheme? (Not final salary?)

A dc pension doesn’t really mature. It just means you can access it at 55 now. You can leave it invested if you don’t need the income. Or take money out flexibly.

Any contributions you put in now will get tax relief (government top up). So if basic tax rate payer wants to put in £100 to their pension they only need to put in £80 and they get another £20 added which is the tax relief. You only get taxed on way out but only based on your total income for year. Note you can take 25% of your pension pot tax free. If you take out remainder of pot you can do it flexibly to minimise tax payable.

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