The Lemon Fool

Hi
I'm 71 and in receipt of a State Pension and a Defined Benefit pension.

I also have a Defined Contribution Pension (DCP) which is "parked". I'm not contributing to, or drawing from the DCP.

I've maxed out my ISA allowances so I'm considering adding to the DCP to take advantage of the Gov 20% top-up.

As I have no earned income, am I limited to paying a maximum of £2880 with the Gov topping this up by £720?

hassettp wrote:Hi
I'm 71 and in receipt of a State Pension and a Defined Benefit pension.

I also have a Defined Contribution Pension (DCP) which is "parked". I'm not contributing to, or drawing from the DCP.

I've maxed out my ISA allowances so I'm considering adding to the DCP to take advantage of the Gov 20% top-up.

As I have no earned income, am I limited to paying a maximum of £2880 with the Gov topping this up by £720?

In a word, yes.

If you happen to be a higher rate tax payer you can declare it (£3600) on your self assessment and it'll push your HRT threshold up by that amount and reduce your tax bill by (up to) a further £720.

Note that you get no tax relief on contributions once you hit 75