Timothy Sumer

It may seem odd to think about contributing to a pension after retirement, after all, retirement is the time you should be spending your pension, right? Well, yes of course, that is certainly one option. But in the early years of your retirement, you might still be working a bit or not need as much from your pension. You might utilise other sources of income first like cash savings, rental income, an inheritance or even other different types of pensions. Here are three reasons why you might want to consider contributing to a pension after retirement: 1. Tax relief. What you pay into a defined contribution pension is topped up by the government via tax relief. For example, if you pay in £8,000 into a pension, the government will top this up by £2,000. That’s a 25% return! Plus if you are a higher rate Income Tax payer you can claim further tax back. Also, if you are still working part time, your employer will likely pay into your pension too! 2. Tax free growth....