Age limit pension contribution

[ArthurMcB]

If i turn 50 on 1st june 2024 can i make contributions to my pension for all of 2024 at 35%?

 

[Dave Vanian]

You hit the 35% rate at 55 not 50. At 50 it's 30%.

But yes the higher rate applies to the full tax year in which you pass the threshold birthday.

 

[fayf]

If i turn 50 on 1st june 2024 can i make contributions to my pension for all of 2024 at 35%?

Bear in mind, if your pension is an employer scheme and processed on Payroll, many payroll systems(but not all), do not apply the higher age threshold, until the month, you reach it, eg June 2024, if this happens, it then backdates, so if you contribute 30 % from January 1st 2024, you may only get 25% Pension relief from January to May Payrolls, but when you reach June payroll, it will backdate the 30% tax relief to January 1st, and you get 6 months tax relief in June Payroll for the additional 5 %(30 minus 25).

 

[Kev1964]

And sometimes you might come up against a pay roll team whose response is the “computer says no”! Don’t take no for an answer though. You are entitled to contribute at the higher limit from1st Jan of the year your age ticks into the next contribution level. Even if you were born on 31st December.

 

[ArthurMcB]

Thanks all

 

[mmclo]

Just bumping this, I like the interpretation but is is written down anywhere?

 

[Kev1964]

Just bumping this, I like the interpretation but is is written down anywhere?

Good question. I had a lot of difficulty finding evidential proof for the pay roll team problem we encountered. I think eventually I found something on the Zurich pensions website but nothing on Revenue ie.

I think it comes down to the principle of tax allowances, liabilities, etc applying to the relevant tax year. It’s definitely the case that you can use the age 50 rate for the full tax year that your 50th birthday is in.