Decky Boy wrote:
I wasn't aware of there being a threshold (and because I work a fair bit of overtime) increased my AVCs to 135 per week at the end of April. I also pay into bonus plan ! This amount appears to be just over the authorised amount for PSE though some weeks I appeared to qualify for PSE and other weeks I did not. On my pay slip my AVC payments danced about from one side of my pay slip to the other on a weekly basis. Sometimes itemised as "arrears" or showing as a minus value
I could tell the weeks I qualified for PSE by the low NI contribution taken. I have reduced my payments and am hoping my payslip settles down next week. I always appeared to get the tax break... it was the NI contributions I missed out on !
At the end of the day, the choice is yours. Dropping out of PSE takes the edge off the incentive. I have a few weeks where I fell out of PSE. This was due to the inept pensions staff. They couldn't give me a definitive answer as to what the limit was. I spoke to payroll and HR before I did get an answer, although I can't remember who it was. At the end of the day, you have to remember that only 25% of your pension can be taken tax free.
IF you would like MORE than that, then look at a Stocks and Shares ISA. I also have a share account. This does have some advantages over a S & S ISA, the charges for holding your account can be much lower. Mine is a fixed payment. Whereas, Hargreaves Lansdown charge 0.45%. The larger the portfolio, the larger the charge. Not the case with my share account. If I stay within the Capital Gains Tax threshold, then I wont pay tax when I come to sell those shares. I intend to sell them in blocks. Around £6,000 per year. £500 per month on top of my NRA60 pension, AND a private pension I will draw down.