Maximum Pension Contributions
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| Planning
for retirement has become one of the most complex and confusing
areas of financial planning. The increasing number of options
available means that informed, unbiased independent financial
advice is even more important when navigating the pensions
minefield. |
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If
you would like to review your current position, whether you
are a long way off from retiring, are nearing retirement or
have already retired, we can help you assess whether you are
really getting the most out of your pension planning.
For occupational pensions, the current ceiling on earnings
that can be pensioned is capped at £105,600 for the
tax year 2006/07. The maximum amount an employee can pay into
an occupational pension scheme is 15 per cent of capped earnings,
regardless of age. Capped earnings do not normally apply to
those members who joined their current employer’s pension
scheme before 1 June 1989 nor where contributions, within
one financial year, are solely being made to a Retirement
Annuity contract.
For personal pensions/stakeholder pensions/retirement annuities,
the following contribution limits apply. |
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Contribution
limits for tax year 2006/07
(or £3,600 per annum if greater) |
|
Age
at start of tax year |
Personal
and Stakeholder Pensions Maximum % |
Retirement
Annuities Maximum % |
Up
to 35 |
17.5 |
17.5 |
|
36-45 |
20 |
17.5 |
46-50 |
25 |
17.5 |
|
51-55 |
30 |
20 |
56-60 |
35 |
22.5 |
|
61-74 |
40 |
27.5 |
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More information on Allowable Pension Contributions
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