Pension lifetime allowance - when to stop contributing?

Pension lifetime allowance - when to stop contributing?

Author
Discussion

LeoSayer

Original Poster:

7,308 posts

245 months

Thursday 19th January 2017
quotequote all
I'm well short of the pension lifetime allowance but I could theoretically hit it before too long if I get good investment performance.

How do you judge when to stop contributing?

LeoSayer

Original Poster:

7,308 posts

245 months

Friday 20th January 2017
quotequote all
47

LeoSayer

Original Poster:

7,308 posts

245 months

Friday 20th January 2017
quotequote all
3/4 of my pot is from a DB scheme so only whole pot so only 1/4 has market risk, but even so I see the benefit of de-risking and withdrawing cash closer to retirement.

My employer gives generous contributions so I could hit the limit before age 60 even with modest performance. Thanks for the formula swatches.

I have been paying in AVCs rather than ISAs recently primarily because I'm able to use the DC pot to pay for the 25% tax free cash from the DB scheme. I wanted to lock that in last year whilst HRT relief and my job was under threat. I think it might be time to stop AVCs but it seems a waste to not take up the opportunity whilst I'm still so far from the allowance limit.