Maxing AVCs close to retirement

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scallywag

Registered User
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Hi, I'm a PAYE worker, just turned 60 last year.
My employer pays 6% towards my pension, I pay 4% as standard, and I pay monthly AVCs of 25%.

Now that I'm 60, I can get tax relief on 40% of my taxable earnings, on pension contributions. In order to maximise my tax relief, what should my AVCs be? Should they be 36%?
 
Yes, you can contribute a combined total of 40% from your income (up to 115K) and get tax relief on that.
Employer contribution would be a separate thing.

So, 36% is the AVC figure.

Just so you know - you can contribute that amount in the year that you turn 60 (i.e. 2024), not only from the date that you turn 60.
So you may be able to get relief for last year too, if you have extra cash available to pay them.
 
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