Time to catch-up with your pension planning?

NOTE: This post is more than 12 months old, and the information contained within may no longer be accurate.

For those that have earnings to support it there are now exactly two months left to make use of the current highest annual pension allowance year 2014/15.

The annual allowance has been over the last three years as follows:

  • 2014/15 : £40,000
  • 2015/16 : £40,000, though could be more for many people due to transitional rules effective 8th July 2015
  • 2016/17 : £40,000, though potentially lower for those earning over £10,000
  • 2017/18 : £40,000, though potentially lower for those earning over £10,000

There is also a lower Money Purchase annual allowance for those that have withdrawn their pensions flexibly, and they will find they have no ability to carry forwards at all and therefore would not be covered by this piece.

In order to fund the annual allowance for the 2014/15 tax year it is necessary to fully fill up the 2017/18 tax year.  For many people this will simply mean increasing their contributions to £40,000 but the reasons given above those earning over above £110,000 may find that they do not know what their annual allowances for the current year and they have to make an estimate will only be known if it was correct after the 6th April 2018.

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