Redundancy & pensions faq's

[Wullie10]

I have a small private pension and I decided to withdraw the maximum lump sum at 55 . I was just going to leave the rest now until retirement but would it be possible to put some redundancy money back into this pension ?

[RobertT]

I have a small private pension and I decided to withdraw the maximum lump sum at 55 . I was just going to leave the rest now until retirement but would it be possible to put some redundancy money back into this pension ?

Yes you can, but there might be things to consider:

1. As previously stated, you can only put in a max of what you earn into a pension each year and gain tax relief. But you can carry over your allowance from the 3 previous years!

2. If you take out any cash over the 25% tax free limit, you'll trigger the Money Purchase Annual Allowance, meaning you'll only be able to contribute a max of £4,000 per year from then on.

3. Increases in the value of any DB pensions you may have(inc. RM), will need to be factored into the MPAA too. See here for guidance: https://techzone.abrdn.com/public/pensi ... -allowance

[NorthernBoy]

Was talking to a postie today and he said that out of 60 staff at his office, 10 were thinking of putting in for redundancy.

Don’t know if this is representative of other offices, but thought it was worth sharing this info. He said most people are fed up.