speedyuk

How does the timing for making additional lump sum pension contributions work? I'm looking to potentially retire this year at age 60. I've only made 5 to 6% contributions to my company pension over the last 5 years. I'd hoped that I could use ALL of the previous 3 years allowances minus what I've already paid to make a £140k contribution to pension as one final boost. I've since discovered to my dismay that you are limited to your total earnings in the year. So if I leave work in September for example it would only be my salary up to that time. How does it work timing wise as you won't know until you have left precisely what your income would be. Do you have a grace after you have left to make the payment into the scheme. Same applies if still in work how does the timing work around the tax year end / beginning? When do you have to have made the payment for it to count in the 'previous' tax year? Hope that makes sense.