pension percentage

[Arcadia]

May be a ridiculous question but could you theoretically pay ALL of your gross salary into a pension each month or is there a limit?

Theoretically, up to the annual limit - currently £40k.

I believe the limit is £40,000pa with a life time limit of £1,000,000 (One million as of 2016.

www.pensionsadvisoryservice.org.uk/about-pensions/saving-into-a-pension/pensions-and-tax/the-annual-allowance

You can, to a max of £40k a year. Unless you're already receiving a private pension, then it's £10k. Have a look on the Pensions Advisory website!

Thanks. Thought there would be a limit. Would need to speak to an IFA as to whether there are better options for long term provision. Returns on savings accounts so crap right now.

Hi,
I work in pensions (in sales so I'm no expert on the technical side) but you need to check with your companies' scheme. I'm don't think you would be able to pay your full salary in. You can make additional voluntary contributions but again you would have to check the rules of your companies pension scheme to check any limits. Hope this helps a little.

Technically yes, you can pay up to 100% of your salary into a pension arrangement but if you exceed the £40k annual allowance you will pay tax on the excess. However, you still have to pay National Insurance and you may have other deductions (Union subscription? Health insurance?) and these have to come out before any pension contributions.

If you are a higher, or additional, rate tax payer and haven't made significant pension contributions over the last 4 years but do have a scheme in place then speak to your pension advisor ASAP as you have - until 5 April - the last chance to use up your unused contributions for the last 4 years and get the tax relief.

Eg if you earn £310k and haven't made any contributions you could put in £160k gross obtaining 45% tax relief do only paying £88k.

If you are planning to put a lot in speak to someone sooner rather than later.