Even if you're not working, you can still contribute to a pension in the UK. Here's how:
The Basic Amount: You can contribute up to £3,600 annually into your pension. The government will automatically add 20% (£720) in tax relief, even if you're not a taxpayer.
Eligibility: Anyone under the age of 75 and a UK resident is eligible to do this.
Other Options: You could also consider contributing to a spouse's or child's pension with the same tax benefits.
Important Considerations:
Annual Allowance: There's a general limit (£60,000 for most people) on the total amount you can contribute across all your pensions each tax year before a tax charge might apply. This includes contributions, tax relief, and employer contributions.
Financial Advice: Accountants Chester can help you determine the best contribution strategy based on your individual circumstances.
Pension Contributions Accountants Chester