Pay into pension from savings interest?

[Mr Squarekins]

Might seem a simple question, but I genuinely have no idea.

If I have no job but effectively make my income from savings interest, am I able to deduct any pension contributions that I make from the interest that is declared to hmrc?

(just like if I was salary sacrificing when I was employed?).

Or can I only make contributions from net income once no longer employed?

[BobToc]

I believe it needs to be from employment income. You can contribute £3,600 a year without any employment income (£2,880 from you and the government gives £720 tax relief).

What is also mildly annoying is that the annual allowance is determined by “adjusted annualised income”, which does include savings income.

[Kirkmoly]

Mr Squarekins said:

Might seem a simple question, but I genuinely have no idea.

If I have no job but effectively make my income from savings interest, am I able to deduct any pension contributions that I make from the interest that is declared to hmrc?

No.

(just like if I was salary sacrificing when I was employed?).

No.

Or can I only make contributions from net income once no longer employed?

Yes, though you will get a gross up. The contribution limit is very low however, £3600 gross amount per year.

[Geffg]

If you have enough money that you make a living from savings interest surely you don’t even need to consider a pension. To get a living from interest only must mean you have a whopping bank balance.
My savings interest could probably buy me a Freddo bar a month.

[BobToc]

Geffg said:

If you have enough money that you make a living from savings interest surely you don’t even need to consider a pension. To get a living from interest only must mean you have a whopping bank balance.
My savings interest could probably buy me a Freddo bar a month.

I mean sure, but tax savings are always nice. Alas there’s none available here really.

[Mr Squarekins]

Thanks everyone.