Pension Contributions

[bennno]

Should I cut my pension contributions and divert more towards mortgage or other uses.

Aged 42, £350k in pension, £20k per year going in...... (unclear if that about right, ahead of where I should be etc)

[bennno]

Lifetime allowance is £1M. can anybody more knowledgable than me advise that with average growth over the next 23 years what a present fund value of £350k would be worth?

[bennno]

I guess just 33 years younger, thanks all. perhaps interpreting this wrong but it looks like I can scale it back a bit.

bennno

[bennno]

sidicks said:

bennno said:

I guess just 33 years younger, thanks all. perhaps interpreting this wrong but it looks like I can scale it back a bit.

bennno

I think K12beanno has raised the key point - lifetime allowance is one thing, but annual allowance is worth considering - annual allowance is currently £40k (I think) but appears likely to be reduced further over time. For those earning over £150k, annual allowance is now just £10k, so depending on your circumstances it may be worth using up previously unused allowances (up to 3 previous years) thereafter you can reduce your contributions back to £10k etc

So say you are in a role where you earn circa that value but its variable, i.e. might be £130k or might be £170k how does the pension annual allowance now work? Is there a risk that if you clip over £150k you suddenly owe the tax relief back on your contributions?

[bennno]

would presume thats where you start to consider alternative forms of future income, perhaps property?

[bennno]

lightbulb moment, or presumably just stop putting it away and buy stuff you don't really need in the shops to keep the economy ticking over.