Due to current market conditions I am considering increasing my pension contributions and am looking for guidance on the maximum amounts I could contribute, and the effect on age limits on these amounts.
For example.
Salary = 100
Company pension contribution = 15
Between 30 and 39 the age maximum contribution is 20%
Between 40 and 49 the age maximum contribution is 25%
two questions.
1. What is the maximum contribution percentage based on.
Is it salary plus employer contribution 115 (100+15). so at 40 it would be 25% of 115 = 28.75.
The company have already contributed 15, so I could contribute up to 13.75 (28.75 - 15)?
Or is it based on the salary prior to employers pension or another amount?
2. If if is my 40th birthday in this tax year, as I will be in the 25% band at the end of the tax year, does this mean that I could pay up to 25% of the salary for the full tax year? (edit, I see this was answered previously as at the age at the end of the tax year)