Pension Annual Allowance

[sammyb349]

I’m in the fortunate position to earn a decent wage in my early thirties, something I hope continues!

The negative aspect to this situation is that my annual pension allowance is £10k p.a.

Reading this thread (https://www.pistonheads.com/gassing/topic.asp?h=0&t=1826604&d=14475.25200#seperator) got me thinking - to get to a half decent pension pot probably isn’t going to happen if the govt. don’t provide some form of age relief. With 22 years (taking me to 55) I’ll have a pot of £220k, which won’t be enough.

I’m not totally unaware however so I am provisioning with ISAs and managing down my mortgage

However, the missing out of additional pension ‘tax shelter’ of both Income Tax and Inheritance Tax has got me irked.

Short of suggesting I should earn less to get a higher allowance, are there any suggestions on how I can maximise my pension provisions in the most tax effective manner?

[sammyb349]

Thank you all. Most helpful - Julian, will pick up with Nik.

On the whole however, I am really seeing how pension sheltering is disappearing quite rapidly - but also miffed at how it was such a gift for previous generations... in 09/10 you could put in £245k !! and able to get sheltering for exceeding lifetime allowance...

[sammyb349]

red_slr said:

Are you using your ISA ?

Yes, but it’s not the same. Taxable income in, tax free gains when you remove.... for now.

Also, ISA sits inside your inheritance tax net, where your pension does not. Ergo, a double whammy.

The only benefit I can see of a smaller pension pot, is that it is unlikely to meet the lifetime allowance with growth taken into account and as such I won’t need to stress about that aspect - 🙃