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  • Pension Annual Allowance in the year of retirement

    Dear HMRC My question is about the pension annual allowance after retirement. I was made redundant in May, when: - I was paid my final months’ salary and a severance payment (total pay is below the “threshold income” of £200,000). - I started to draw my employer’s DB (defined benefit) pension (no flexible access). - I am also receiving a small personal pension paid as an annuity (no flexible access). If I wanted to contribute some of my severance payment into a SIPP (self-invested personal pension) in the current tax year, what would be my pension contribution annual allowance, please? Would the annual allowance still be £60,000 (minus any employer/employee pension contributions from my last months' pay) even though I have retired? Thanks in anticipation of assistance. Doug