Ndubuisi 'Andy' Egwim explains how NHS doctors can use their full £60,000 annual pension allowance. NHS contributions count before tax, and if they don't reach the limit, a SIPP can top up the rest. Salary sacrifice maximises the benefit.
Your NHS pension. If you've got a private pension, if you've got a salary, sacrifice anything that you put into your pension. 60,000 is the maximum you can put in a year. There are two problems here. Some people don't use all the allowance and then there are people who use less than the allowance and they. I mean, if you don't have the extra cash, yeah, that's fine. But some people have, but they don't know that they can actually use up the allowance. If you decide to put in as much as you can into that, that will automatically reduce the amount that is taxable because your pension is counted before your tax. Now, even if you end up not using up your whole nhs, if you don't use your whole allowance because the NHS pension was not enough to get there, you can still go ahead and use a private pension. So that's what the SIP a self invested personal pension, which I prefer because you can manage it by yourself. You don't have to pay any crazy fees if you use the right platforms that charge little or no fees. And again, there's sars, which is a bit more difficult to manage. But your private pension, you can decide to use it to get up to that amount.
